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Did MF Global Help Koch Brothers Withdraw Their Money Before Collapse?

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stockholmer Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-23-11 11:10 AM
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Did MF Global Help Koch Brothers Withdraw Their Money Before Collapse?
http://www.huffingtonpost.com/daniel-dicker/the-koch-br...

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But perhaps the most stunning piece of news were getting in the wake of the MF Global collapse is in the clients of the firm who managed to get away scot-free, with no freezing of accounts or capital particularly the accounts of the mega-cap independent oil company Koch Industries, run by the politically active Koch brothers.

A recent report in Reuters http://www.reuters.com/article/2011/11/11/us-mfglobal-c... has described the billions of dollars of client accounts that were withdrawn from MF Global in the last few weeks before their collapse, including 8 accounts from Koch industries engaged in oil trade that were transferred to Mizuho Securities after years of a steady and profitable relationship with MF. The Reuters piece concentrates on the possibilities of legal clawback of client money if the bankruptcy does not allow remaining client accounts to be made whole.

The Reuters piece misses the point.

Both the Commodity Futures Trading Commission and the Chicago Mercantile Exchange were charged with overseeing MF Global, their clearing member. If we are to believe them, they had no idea of any difficulties within the firm before customer accounts went missing just a few days before the collapse. But someone clearly knew of the cratering positions and imminent collapse of MF Global, as billions of dollars of accounts were coincidentally withdrawn. And what do the Koch brothers say was the reason for these withdrawals? Theres been no comment.

For those still battling the excesses of 2008 and those occupying Wall Street, this has been another proof of the inside, fixed operation of the financial markets. When banks go wrong, betting big with other peoples money and losing, they can be sure of a bailout that guarantees their bonuses and businesses. And when firms are tailspinning to disaster, the richest and most financially influential partners are sure to get a phone call a heads-up to save their assets and leave regular people with the mess.


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Wilms Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Nov-23-11 09:25 PM
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