Tuesday, December 13, 2011
CME won't guarantee funds that remain missing from MF Global
From The Chicago Tribune:
CME Group Chief Operating Officer Bryan Durkin said on Monday the exchange will not guarantee the funds that remain missing from customer accounts at bankrupt brokerage MF Global after they are reimbursed by the bankruptcy trustee.
Such a move would be "unwise" and the CME has a "fiduciary responsibility" to its shareholders, he said at a National Grain and Feed Association conference on Monday.
CME in late November expanded the size of a fund to help return cash to former MF Global clients to $550 million from $250 million. The brokerage collapsed Oct. 31 after making bad bets on European debt.
Hundreds of millions of dollars were missing from clients' accounts at the firm.
A trustee overseeing the bankruptcy has said an increased payout to former clients should restore at least two thirds of U.S.-based property for the broker-dealer unit.
CME will not guarantee the remainder, Durkin said.
"We really feel we cannot expose ourselves to that level of responsibility or risk," Durkin told the NGFA Country Elevator Conference. "It's not covered as part of our rules. All of that being said we have taken some very unprecedented steps......read on
CME Group Chief Operating Officer Bryan Durkin said on Monday the exchange will not guarantee the funds that remain missing from customer accounts at bankrupt brokerage MF Global after they are reimbursed by the bankruptcy trustee.
Such a move would be "unwise" and the CME has a "fiduciary responsibility" to its shareholders, he said at a National Grain and Feed Association conference on Monday.
CME in late November expanded the size of a fund to help return cash to former MF Global clients to $550 million from $250 million. The brokerage collapsed Oct. 31 after making bad bets on European debt.
Hundreds of millions of dollars were missing from clients' accounts at the firm.
A trustee overseeing the bankruptcy has said an increased payout to former clients should restore at least two thirds of U.S.-based property for the broker-dealer unit.
CME will not guarantee the remainder, Durkin said.
"We really feel we cannot expose ourselves to that level of responsibility or risk," Durkin told the NGFA Country Elevator Conference. "It's not covered as part of our rules. All of that being said we have taken some very unprecedented steps......read on
Terrence Duffy of the CME Group in November 2011
"No customer has ever lost a penny as a result of clearing house default at CME group, and that includes during the Great Depression"
19 Guys and a Camel
Martin Armstrong on the 2012 National Defense Authorization Act
click on image to go thru to the report
US National Guard Ad to help secure the "FEMA Camps"
What was your Real Return?
Thanks to Arabian Money for the basis of this post.
In these days of rampant money creation (from nothing of course) one, more than ever needs to factor in inflation when calculating returns on investments.
The chart above is an interesting study in central bank management. As it seems the so called less developed countries are providing capital growth for their citizens were as the smartest guys in the room in the US & UK are actively destroying capital.
Australia whilst not mentioned above comes out very well. The RBA calculated inflation rate for 2010 was 2.7% compared to an average 4.75% for a cash management account, resulting in a real return of approx. positive 2%, which would place the arse end of the world at no. 2
Gold, Silver and Euro lower as market passes judgement
Gold, Silver and the Euro all traded lower as London and New York markets had their first chance to pass judgement on the latest meeting of the EU Dons and their plans for fiscal union. Also no doubt the ongoing MF Global and CME debacle has reduced the number of participants in the futures markets, reducing liquidity and thereby increasing volatility.
Martin Armstrong on the MF Global Disaster
The collapse of the World Financial System - Why MF Global is worse than Europe
click on image to go thru to the report
Monday, December 12, 2011
Latvian Bank Runs on Swedish Banks
STOCKHOLM -(Dow Jones)- Swedish lender Swedbank AB (SWED-A.SK) doesn't expect the weekend's extensive cash withdrawals in Latvia to result in any liquidity problems, an executive told Dow Jones Newswires on Monday.
Latvians during the weekend withdrew unusual amounts of cash from Swedish banks' cash machines in the country, following rumors that Swedish banks could be in trouble, Swedbank Communications Director Thomas Backteman said.
The rumors began about two weeks ago when Latvian authorities took over Latvian bank Krajbanka and intensified Friday, Backteman said, but he added that the rumors were completely groundless.
Swedbank estimates that the weekend's cash machine withdrawals were seven times higher than during a normal weekend, at around 15 million lat ($29 million), Backteman said. Around a third of Swedbank's Latvian cash machines were empty by 2000 GMT Sunday evening, he said.
Latvians during the weekend withdrew unusual amounts of cash from Swedish banks' cash machines in the country, following rumors that Swedish banks could be in trouble, Swedbank Communications Director Thomas Backteman said.
The rumors began about two weeks ago when Latvian authorities took over Latvian bank Krajbanka and intensified Friday, Backteman said, but he added that the rumors were completely groundless.
Swedbank estimates that the weekend's cash machine withdrawals were seven times higher than during a normal weekend, at around 15 million lat ($29 million), Backteman said. Around a third of Swedbank's Latvian cash machines were empty by 2000 GMT Sunday evening, he said.
Sean and Bob Chapman discuss MF Global, CFTC, Ron Paul and more
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