Right, no SIPC for futures accounts. I was commenting on benwm's post where a $100k limit is mentioned. The Karl Denninger linked article also mentions $100k. Interactive Brokers has a twist on SIPC and futures accounts in their universal account: *** Customer securities accounts at Interactive Brokers are protected under SIPC up to $500,000 (with a cash sublimit of $250,000) and under Interactive Brokers' excess SIPC policy with Lloyd's of London insurers for up to an additional $30 million (with a cash sublimit of $900,000). Your stocks, options, warrants, debt instruments, and cash -- denominated in all currencies -- are covered by this protection. Futures, options on futures, and single stock futures are not covered, but available cash will be swept from your futures account to your securities account periodically to take advantage of SIPC and excess SIPC coverage to the greatest extent possible. *** Does anyone know how often cash is swept into the securities account?
MF Global: Customers Appeal an Apparent Conflict of Interest With the Bankruptcy Trustee Source: http://jessescrossroadscafe.blogspot.com/ It's the scandal that keeps on giving. A party associated with The MF Global Customer Coalition has sent a letter to Judge Glenn asking him to reverse the appointment of James Giddens as Trustee for the MF Global Bankruptcy case. <b>Apparently Mr. Giddens law firm's largest customers and his own clients in other matters are J.P. Morgan and Price Waterhouse.</b> J. P. Morgan at least has enjoyed a somewhat contentious relationship with the customers' interests so far. There is strong feeling that this represents a substanial conflict of interest, and has been carrying over into some of the statements and decisions that have been made by the trustee. It will be interesting to see if the Judge concurs.
Reality is by agreeing to accept and maintain client funds in segregated accounts MF Global and each of its employees became Trustees with a Fiduciary Duty to each of its clients. This is no different than depositing money in any bank. Clients are not creditors and should not participate in these bankruptcy proceedings nor have any of their assets managed by this Trustee. Clients should consider filing for a TRO and injunction in the Chancery Courts of Cook County barring the Trustee from any use of their funds and to compel distributions. Fraud survives the MF Bankruptcy and allow the corporate veil to be pierced allowing for recovery from each of their officers, directors and employees personal assets. By seizing client assets this Trustee stands in the shoes of MF Global and is liable for their actions. This Trustee has a clear conflict of interest representing the beneficial interest of each client, mf global and its creditors. Report the Trustee to the ARDC and file a claim under their client recovery program for up to $500K and get him disbarred.
I think there is a lot of merit in this argument. I have been really puzzled that it was not raised earlier. The Trustee should have promptly sued JP Morgan and any other banks that received funds from MF Global client accounts as well as various MF Global employees for the immediate return of Trust assets.
Well, J.P. Morgan is one of Mr. Giddens law firm's largest customers so that's not going to happen. I'm also surprised JP Morgan has not had more adverse publicity over their attempts as a creditor to step in front of segregated accounts and prior to bankrupcty accepting collateral that was taken from MF Global's customer accounts. This should be all over the newswires, it's a massive story that the media seems to be ignoring. Does the media have Madoff fatigue? What do you have to do to lose a banking license these days?
http://dm.epiq11.com/MFG/document/GetDocument.aspx?DocumentId=1450861 It sounds like everyone, cash only customers and those who had positions transfered will recieve a distribution, if that is approved in court on Thursday. This should be very telling to see who would argue against that going forward, the reasons will give us all a good indication of future distributions. I'm still looking for something definitive indicating that on how the segregrated accounts stand in all of this. I want to know if the trustee is going to force the "bank" MF parent company to make whole the "safe deposit boxes" customers (seg accounts) out of the "banks" MF parent company's assets? I guess what I'm asking if we're going to end up whole first out of MF's assets before the other creditors on the parent side first? The other question, is the trustee charging the segregrated accounts for his "services"?
Client segregated cash is not an asset of MF global. Clients are not creditors... By not immediately distributing client funds and by transferring and accepting client cash funds into the liquidating trust the trustee is operating an unlicensed and unchartered bank. Unauthorized Banking is a financial crime. An unauthorized bank is any financial institution operating without a license or charter. You can report information you have about such institutions to the OCC via E-mail: OCCAlertResponses@occ.treas.gov Fax: (202) 874-5214 Mail: Office of the Comptroller of the Currency Enforcement & Compliance Division MS 8-10, 250 E Street SW Washington, DC 20219 http://www.occ.treas.gov/topics/ban...rized-banking/index-unauthorized-banking.html