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Politics : Liberalism: Do You Agree We've Had Enough of It? -- Ignore unavailable to you. Want to Upgrade?

To: JBTFD who wrote (117921)	11/19/2011 11:49:29 PM
From: Hope Praytochange	1 Recommendation Respond to of 224888

MF Global Moved Clients' Funds to BNY Mellon By AARON LUCCHETTI MF Global Holdings Ltd. moved hundreds of millions of dollars in customer money from its U.S. brokerage unit to Bank of New York Mellon Corp. in August, more than two months before the securities firm filed for bankruptcy protection, according to people familiar with the matter. There is no sign the move has anything to do with the estimated $600 million in missing customer money at MF Global that regulators have been hunting for since the Chapter 11 filing on Oct. 31. But the shift came as U.S. securities regulators were requiring this summer that MF Global set aside more capital in its U.S. brokerage unit to cushion against possible losses from the firm's $6.3 billion bet on European sovereign debt. More MF Global Research Group to Join Guggenheim Partners Around the same time, MF Global sharply reduced the amount of overseas customers assets it held in its U.S brokerage, according to regulatory records. Customer segregated funds in the unit overall declined to $7.3 billion from $8.8 billion, while Bank of New York's segregated customer funds increased to $500 million from $45 million the prior month. MF Global's reduction in the customer funds it kept in its U.S. brokerage softened the blow of the increased capital requirements imposed by the Securities and Exchange Commission and the Financial Industry Regulatory Authority. That's the because the SEC requirements applied specifically to the U.S. brokerage. Federal prosecutors in Chicago and New York have issued subpoenas in the probe of the collapse of MF Global Holdings Ltd. WSJ's Colin Barr has details on the Markets Hub, WSJ's Colin Barr reports on Markets Hub. Photo: Getty Images. The decision affected customers of MF Global outside the U.S., including in the U.K., according to people familiar with the situation. The money shifted to BNY Mellon remained in customers' segregated accounts, as required by U.S. rules, according to a person familiar with the matter. The money also was still under the MF umbrella and only housed at BNY Mellon. MF Global officials have noted that the movement of money allowed the firm to avoid setting aside capital twice for the same customer assets, once in the U.K. and once in the U.S., a person familiar with the firm's thinking said. MF Global has provided clearing services to BNY Mellon since 2010 and worked on the transfer of brokerage assets for several months before the August move, according to people familiar with the matter. Setting aside less capital could have made the firm's financial outlook more risky just before the run on the firm that pushed MF Global into bankruptcy last month. Only in its last week before the Chapter 11 filing did MF Global make a serious push to raise cash by selling assets in its European trading portfolio, according to people familiar with the matter and regulatory filings. More Related Video MF Global's Costly Mess: 30,000+ Accounts Frozen (11/15/2011) MF Global Fires All 1,066 Employees (11/11/2011) Lessons From MF Global (11/07/2011) The movement of U.K. customers' money into BNY Mellon from the MF Global brokerage unit in the U.S., called MF Global Inc., could have implications for how customers there are treated in the bankruptcy process. While the trustee overseeing the U.S. brokerage unit won a court decision this past week to distribute some cash to MF Global's U.S. customers, U.K. customers could benefit from having the money with a solvent bank like BNY Mellon rather than a clearing entity that is part of a bankruptcy proceeding. "It certainly doesn't make it harder and it's more likely to make it easier," said one person involved with the bankruptcy in the U.K. The British bankruptcy process was criticized after Lehman Brothers Holdings Inc.'s demise in 2008, since many funds that operated in the U.K. lost money in the firm's collapse, while funds that operated in the U.S. were better protected. The U.K. bankruptcy administrator for MF Global, KPMG, said in a statement that it was "exploring the possibility of making interim payments while the colossal task of identifying and reconciling clients positions is achieved." Some regulators in the U.S., however, have grown concerned that missing money may be overseas and think that the movement of funds across national lines could complicate recovery. "We are aware that assets may be offshore," said Kent Jarrell, a spokesman for the bankruptcy trustee for MF Global Inc. "We will explore and try to find out where the money is and determine whether it's the property of the estate."

To: JBTFD who wrote (117921)	11/20/2011 2:55:53 AM
From: Jorj X Mckie	5 Recommendations Read Replies (2) \| Respond to of 224888

No they don't do violence. Considering the violence that has been leveled at them they have been very non violent. Please give some examples where there was violence done to "them" that was unprovoked. What violence was done to the hundred or so "protesters" who took over the Chase bank? They all seemed somewhat unmolested to me. but then again, as Paul V would tell us, the goal here is for the protesters to overwhelm the system. And when the world basically said "go ahead, have your little temper tantrum and sleep in the parks"....it is clear that they had to escalate until they got arrested. If that means taking over banks and fast food restaurants and crapping on cop cars and threatening to torch Macy's, well, that's what they'll do.