John and James go to Washington

#PFGBest Customers

Are you a customer of PFGBest? The CCC is working with regulators and monitoring the court on behalf of PFG customers. At this stage, we are advising customers to gather their statements and prepare for a claims or account transfer process.

Stay tuned to our website for more information.

John Roe and I are flying to DC tonight to meet with members of Congress tomorrow and appear on Bloomberg TV Thursday morning ahead of the hearing. We still have a few meeting slots open for tomorrow afternoon and now is the time for CCC members to unleash the phone calls, emails, and tweets to their congressional representatives to meet with us.

#MFGlobal Customers

Are you a customer of MF Global? The CCC formally represents more than 200 clients in the bankruptcy process of MF Global on a pro bono basis, and informally represents thousands more in the public domain.

Get the latest news on #MFGlboal.

About James Koutoulas 209 Articles
Co-Founder and lead attorney of the CCC, CEO of Typhon Capital Management and Typhon Securities.

16 Comments

  1. We all signed the MFG account applications. I bet non of us understood this little provision allowing MFG to risk our deposits legally. I see little or no hope we’ll be able to claw these lost funds back. Hopefully the CME will do the right thing.

    MF RE-HYPOTHECATION PROVISION

    A similar re-hypothecation provision can be seen in MF Global’s U.S. client agreements. MF Global’s Customer Agreement for trading in cash commodities, commodity futures, security futures, options, and forward contracts, securities, foreign futures and options and currencies includes the following clause:

    “7. Consent To Loan Or PledgeYou hereby grant us the right, in accordance with Applicable Law, to borrow, pledge, repledge, transfer, hypothecate, rehypothecate,loan, or invest any of the Collateral, including, without limitation, utilizing the Collateral to purchase or sell securities pursuant to repurchase agreements [repos] or reverse repurchase agreements with any party, in each case without notice to you, and we shall have no obligation to retain a like amount of similar Collateral in our possession and control.”

      • Good point – they are in business to make money, so they must think we have a good chance of recouping more than 83/85% of our money. That should at least give us a mental boost of sorts, given that 100% is somewhat of a possibility here.

        At least once this third distro is complete we can start focusing on the claims process. It still amazes me how at this stage of the game they still cannot (or will not) give us a total on the missing customer money.

          • agreed….the way it has been going it’s more likely the number will go up than down. Down to a waiting game….

          • Just to be clear, are these 83 to 85 cent bids for customer assets recent such that they are for the remaining balance, excluding what was already distributed? If so, that implies a total recovery baked in of about 94 cents.

  2. Apologies if this has already been discussed on the site and I missed it, but following is a link to a report by the OIG that is highly critical of the SIPC and the fees earned by trustees, along with some details of Giddens’ relationship with the SIPC. It might be helpful to the CCC’s efforts to raise the details of this report in discussions with representatives and the media.

    OIG Report: http://www.sec-oig.gov/Reports/AuditsInspections/2011/495.pdf
    via
    http://www.zerohedge.com/contributed/bombshell-damning-sec-oig-audit-sipc-raises-conflicts-interest-mf-global-liquidation-tru

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