Re-hypothecation and MF Global

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Lnorris's picture
Status: Silver Member (Offline)
Joined: Mar 28 2011
Posts: 105
Re-hypothecation and MF Global

 I read this article on Zero HEdge this evening by Thomson Reuters' Business Law Currents.

Anyone who has money invested with a brokerage should absolutely read it.  Basically what MF Global did was legal because of a loophole that allowed them to pony up their clients money as collateral.  It's been legal as far back as 2005 when the rules were relaxed so that customer money could be used to enter into repurchase agreements, buy foreign bonds, money market funds etc...

Insidious, deceitful, and evil...the list goes on.


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