Infolinks for accounts moved to RJO Corp. Per the links - cash is still controlled by the bankrupcy trustee. Positions brought over were delivered with only 75% of margin requirements. www.rjobrien.com/mfgindividuals/ http://www.rjobrien.com/mfglobal/ info call http://www.rjobrien.com/mfglobal/rjobrein_110411.mp3
Its' good that you posted those links. I noticed that they just reduced the figure of margin they transfered from 80% down to 75%. Now, trying to think this through logically. At first all access was cut off then they opened up only allowing offsetting orders earlier this last week. Then nobody could do anything at all. Earlier posts here mentioned the figure of 11% of the segregrated funds missing. They just moved remaining positions with 80% margin now reduced to 75%. I'm thinking that if and when they start moving flat or cash only accounts, we'll see a 25% haircut to begin with, the remainder of whatever is left much later. I'm praying for those who had open positions this last week, hopefully they didn't get hurt.
I suspect the court appointed SIPC trustee is probably pretty close to understanding the total shortfall in segregated customer funds. That total haircut should be divided across all accounts in proportion (~ 11% haircut). The extra funds on deposit with the exchanges will likely flow back to their original owners new accounts. If the trustee is any good he'll probably get the 11% in time. I imagine the only unknown is how much friction the lawsuits will bring to this process. My take is cash accounts get funded to at least 89% once the margin up process is complete for the new accounts transferred with positions (to all brokers not just RJO). Estimates for this are probably Tuesday night per the links. Although I suspect laws were broken, it's also likely that some kind of deal takes place (ie Morgan gives back customer segregated funds that were miss-placed) so everyone can live happily ever after. The open issue of course is what recourse account holders and IB's have for their losses arising out of open positions that were untouchable due to this bankruptcy. Clearly not being able to access open positions has put the hurt on lots of folks this past week.
There is also good chance Morgan was directed to make margin call payments for RF Global using customer segregated funds. If that is the case we'll never see the shortfall (hopefully it remains at ~11%). Corzine was awful quick to exit stage right and hire a white collar crime lawyer. Remember the deal with IB was based on IB advancing ~ 800 mil to RF Global as part of the acquisition process. [per the news wires]
Don is busy praying. He's praying for the WRONG thing. He should be praying that we wise up and invoke the death penalty for these kind of white collar crimes. Harsh? That's the only way you can possible prevent them, and even that may not be enough. But it's the only chance you have. Demand it, or stfu when they tear you a new one.
I guess if you knew you were facing the death penalty it could take some of the fun out of eating other folks lunch. It would make the end game for these folks a bit more like Momammar G. Keep it simple - Do away with the minimum security country club prisons and make 'em do long hard time in hot nasty places. Perhaps Quantanamo Bay complete with weekly water-boarding. Why not - They are financial terrorists.
This is surprisingly tight. I understand they can't release full margin, because of cases where an account is ~100% margined and thus would exit MF with no haircut, which would be unfair to other claimants. But more reasonable would be, "bring over positions along with their full margin, but not to exceed 75% of the account's cash."
benwm, did you really have to take a previously useful thread and set it on the path of horrific irrelevance?
Apologies - I tried to delete a little while later but was timed out. Sorry! Perhaps administrator can delete..
Follows exactly what's already been posted elsewhere... Checking my account via emidas, my funds are still in MF. No change for me yet. <i>Dear [redacted], If you had positions on in your MF Global account, they were successfully transferred to RJ Oââ¬â¢Brien over this past weekend. Unfortunately, you are likely on a margin call now, as MF Global only transferred a portion of the necessary margin requirement. We are hopeful that the remaining funds will move over to your new RJO account soon, but in the mean time, you must meet the margin call by either liquidation of positions or sending additional funds to your new account. Please call my office today at your earliest convenience to review your positions. We will assist you in liquidation of necessary positions. Note: If you had positions on at MF Global, you should have received a new statement from RJ Oââ¬â¢Brien over the weekend. If you did not, please contact my office. We are still awaiting word on the timeframe for the release of customer cash still on the books at MF Global. We will let you know when we find anything out on this issue.</i>