Monday, October 31, 2011

Fed Primary Dealer MF Global Bankrupt

Reuters reported on the egg Blue bankster Jon Corzine threw on the New York Federal Reserve Bank with MF Global's bankruptcy.

MF Global Holdings Ltd, just nine months after ascending to the list of primary dealers who transact business directly with the Fed, filed for Chapter 11 bankruptcy on Monday.

The bankruptcy does raise questions, however, about how the Fed picks the primary dealers -- especially since MF Global was one of four firms added to the ranks after new, more stringent requirements were put in effect in 2010.

A spokesman for the New York Fed declined to comment.

Corzine's firm bet on a EU bailout for its significant European government bond holdings.  He counted on a bailout, maybe even relied on credit coverage. Nevertheless, a Fed primary dealer went belly up after passing "stringent requirements."  

MF Global's demise leaves 21 primary dealers to execute Ben Bernanke's Operation Twist.  

Update:  ZeroHedge made Corzine out to be Bernie Madoff, one who stole from his firm's customers. 

Update 11-6-11:  MF Global's clients may be organizing. Also, BlackRock and Evercore found MF Global's commingling of the firm's and client funds, but the Federal Reserve Bank could not.