James Koutoulas on JPM Boycott, MF Global Failure, ZIRP ... more.

Warren Pollock interviews James Koutoulas CEO of the Commodity Customer Coalition. Were it not for James, MF Global customers would have been totally overrun by an exparte bankruptcy process dominated by JP Morgan and the SIPC. This breaking interview covers important issues regarding JP Morgan's refusal to address concerns regarding its conduct as custodian of MF Global segregated house, their role in lowballing MF Global customers with a 40c offer on the dollar, with their fingers all over the bankruptcy, head of creditors committee, preferential purchases of LME stock, the ability to flip assets of MF Global without competitive bid. JMP even asked MF Global for a comfort letter to assure that funds were not sourced from customers, yet JPM still grabbed the 200 Million even without such assurance. JPM even fired James as a customer via a vindictive letter written midlevel executive. JPM does not think that 8000 customers under representation is not a credible force. We talk about having clean hands and unclean hands through a process where people do wrongdoing and then benefit from it. JPM has been stonewalling inquiries on the part of interested parties. MF global may be indicative of other situations in term of hypothecation and re-hypothecation. James thinks that ZIRP Zero Interest rate policy has encouraged the issuance of leverage via derivatives with no provision for loss. Its natural that a small percentage loss on a levered bet would result in customer funds being tapped simply because no other real money or collateral exists. We talk about the idea of segregation of funds being a basic financial construct, yet fractional reserve banking, derivatives, and netting mean that liabilities are far in excess of total cash. Judge Glenn has established a high standard of illegal conveyance in order for MF Global customers to reach into MF Global holdings assets. James has a strategy to address this standard by arguing that CFTC regulations with bankruptcy laws say otherwise since customer funds must be segregated every second of every day. This may be a venue issue because the bankruptcy is managed by the SIPC even though only 400 customers are securities customers with tens of thousands being commodity customers. Bankruptcy managed under CFTC regulations would have worked to majority interest. Not a single FCM (commodities brokers) filed a document to represent the interests of customers. The commodity customer coalition had to build an organization from scratch then having to deal with issues that managed before its influenced was passed. In a way its outside the process or exparte. JPM has been acting with arrogance and hubris by not listening to the issues of the CCC. JPM made an offer of 40c on the dollar vs an industry standard offer between 80c and 86c. According to James, a fat cat Trustee has reformed itself based on meetings which he led. The Trustee has been prevented from milking the situation for millions in fees. The Trustee has not incorporated most of the CCC's talking points which has saved the businesses of many a market participant including farmers who would have been put out of business were the bankruptcy proceed at a Lehman pace. Readily Identifiable property, including gold and sliver certificates and treasuries, represents a major issue that has not been addressed. and much more

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[TiredOldFart]

Warren, did you produce a goods or service for the economy? Or were you one of the "worthless eaters" living from the productivity of others through your arbitrage of global prices? MF Global.

[wepollock]

@TiredOldFart Grandfather was an Architect having designed buildings, Father was an Engineer having patented and designed products which you use today including thin films and exotic materials and alloys, me well I built wall street black box trading infrastructure the precursor roots of high frequency trading! bottom line I am quite useless in a real economy.

[kileer7]

Warren, what do you think of Eamonn Fingleton? Would you consider interviewing him about Japan?

[wepollock]

@kileer7 he would be a great guest.. perhaps you could dig up his email for me.

[TheStreeser1]

Thank You Warren for all the great vids in 2011, I hope you will keep them coming ! Happy New Year to You and Family.

[wepollock]

@TheStreeser1 thanks.. its all based on viewers. If you want me to attract top guys (such as JK) please add me to twitter wepollock and also distribute these videos to blogs leaders and alternate media outlets, like and favorite them.

[nmreich]

Warren is a truly forward-thinking guy and one of the best assets here on youtube for this genre of reality. Thank you Warren for all your time spent researching, interviewing and THINKING and most of all for sharing those thoughts with us FREE OF CHARGE! Keep up the good work and wishing you and your family a very happy New Year 2012.

[N1ceGuyEdd1e]

23:26 says it all.

[Dactuck]

@Garyscott7 If Koutoulas is harmed, the 2nd Civil War in America would have begun. Honestly.

[Dactuck]

@rjg1021 The CME, as a publicly traded entity, has seen financial losses of in excess of 2 billion dollars since the MF debacle. Their shareholders will obviously see more losses, as the trust in their markets, the markets they claim to regulate, continues to erode. Clearly, the CME can't guarantee funds, so their marketing device has been exposed to be fraud.

[yaahme]

@ 13:20 or so Warren opens it wide where the stunning admission of CME's Daffey who is reported to have admitted to essential systemic exposure if they were to honor MF Global...

Crap, this thing is worse than most realize!

[TiredOldFart]

@wepollock Amazing integrity in your reply. Kudos to you. MF Global and Corzine will escape the rule of law unless an MFG investor takes him out. You or I only serve the purpose as a source of wealth transfer. The rule of law was pushed aside with Clinton's signature of GBL. The theft escalated there with the theft from GM bond holders and taxpayer - TARP. Eighty cents on the dollar is a good deal if it's paid today and you have somewhere to preserve it from future theft.

[TiredOldFart]

"JPMorgan's fingerprints are all over this thing". Now there's a surprise. Isn't Pheft their middle name?

[Frequencitee]

This is an empowering report, Warren. Thank you, and JK, for breaking this down into manageable information. The "Comfort Letter" is but one more layer, which violates banking rules under the Uniform Commercial Code, with respect to how banks can operate. They lied. No amount of smoke, mirrors, doublespeak, or corporate charisma, can mitigate intent.

[alph8c]

I have been considering closing my 2 chase credit card accounts for a while now.

I know the phone call runaround they do if you need to discuss an issue with them. I'm closing my accounts today.....

Happy (fiscal) New Year.

Appreciate you reporting... Thank you Warren...