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Parsing of 211111 Statement

Parsing of 211111 Statement

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Published by englishbob618

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Published by: englishbob618 on Nov 22, 2011
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11/22/2011

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Statement from the Office of the Trustee for the Liquidation of MF Global Inc.
Trustee Distributing Virtually All Property Under His Control; “Shortfall” May Be Larger
Than MF Global Management Had Reported Prior to Bankruptcy
November 21, 2011
 – 
New York, New York 
 – 
James W. Giddens, Trustee for the liquidation of MF Global Inc., today reported that his current plan to distribute 60% of what should have beensegregated
(Trustee makes accusation that the
“ 
missing funds
are from the segregated portion.Yet to this date there has been no verification of this claim anywhere.)
in US depositories for allformer customers with US futures positions will total nearly all of the assets currently under his
 
control. The Trustee to date has brought approximately $3.7 billion under his control, all of 
 
which comes from the former US depositories of the broker-dealer.
(Here Trustee Giddensinforms the world that he has been unable to bring any MF Global assets under his control after all these weeks. Just those of customers. Even here, an exact accounting is not given. Yet everysingle client can make an accounting of their own statement for rapid reconcilation with theTrustee. After all client statemens were reconciled daily to the penny. The court must examinehow is it possible that only customer assets are
“ 
under control
when MF Global has identified assets far exceeding the claimed shortfalls.)
Having already distributed $1.5 billion in collateral,and currently distributing $520 million in cash, leaves approximately $1.6 billion on hand. Thepreviously announced next step, restoring 60% of what is in segregated customer accounts forUS futures positions,
 
would require approximately $1.3 to $1.6 billion to implement; that is,
 
virtually all of the assets currently under the Trustee’s control.
 
(Whining to the public that returning funds to clients should not be done because it would deplete the Trustee assets under his control? Customer assets do not belong in the bankruptcy estate in the fist place. It is the job of the Trustee to liquidate, gather assets, take his cut and pay off debtors. Here we have a
 
Trustee spining the claime of 
“ 
apprently
missing funds, and his inability to get MF Globalassets under his control to then steal from citizens and businesses around the country and secureinto the MF Global estate. .)
This next step is subject to Bankruptcy Court approval,
(Uh oh!This is the big out. Yes, the court must approve every step, but the Trustee is making filingmotions fast and furiouly to reduce both the standing and voice of client and customer representation. Why? Because he risks being ordered by the court to return client property. And remember, the estate pays for the work on these motions that have little or nothing to dowith the work of a liquidator and seemingly more to do with getting rid of pesky customers and clients who demand return of their titled property.
See motion yesterday
. )
and will be done inclose cooperation with the
 
CFTC, SIPC, and the CME.
(The CFTC already abdicated their roleby allowing the responsibility of customer funds to go to SIPC. The Chairman of the CFTC isn
’ 
answering questions and 
ignoring demands for answers from the Senate
. CFTC staff is
 dysfunctional 
and running for cover. The SIPC has nothing to do with commodity accounts and no knowledge of the industry. And the CME has already demonstrated that they just 
 follow court orders
 , no matter how nonsensical or ludicrous.)
The Trustee expects this transfer tooccur in early December, once the current transfer is complete and books and records arereconciled to allow it to happen.Efforts to collect other funds from US depositories continue around the clock, and it is expectedthat the US funds available to the Trustee will increase in the coming weeks.
(What is theexact sum of funds at US depositories? This figure must be known. )
At present, however, the Trusteedoes not have access to other funds beyond the $1.6 billion on hand, and he is very close to
 
exhausting the funds under his control.
(What does that have to do with return of customer assets?)
 
 
Further complicating matters, assets located in foreign depositories for customers that
 
traded in foreign futures are now under the control of foreign bankruptcy trustees, and while theTrustee will pursue them vigorously, it has been his experience that recovery of these foreignassets may take more time.
(This is loaded. And we welcome informed comment on that point  from readers: But for now:1.)
 
Customer assets held in margin with exchanges such as the Eurex, are immediatelyidentifiable and returnable to rightful owners. That is how the futures industry is organized.2.)
 
We understand that Canadian exchanges, for example, are well into returning funds torightful owners in Canada.3.)
 
Can Trustee Giddens tell us exactly what he has done to date
 – 
in cooperation with allexchanges -- to secure US customer assets held in Canada? Or Germany? Can TrusteeGiddens explain how it happened that 
“ 
U.S. regulators, inadvertently transferred many of the Canadian accounts to another U.S. brokerage
.)
 
 
The Trustee’s counsel has also stated in open court that the Trustee has only relatively nominal
proprietary
 – 
that is non-customer
 – 
assets in his immediate control.
(
The amount of assets theTrustee controls has nothing to do with returning client funds.)
 
from the apparent shortfall in whatformer MF Global Management should have segregated.
 
At present, the Trustee believes thateven if he recovers everything that is at US depositories, the apparent shortfall in what MF
 
Global management should have segregated at US depositories may be as much as $1.2 billion
 
or more. The Trustee wants to stress that these are preliminary numbers that may well change,
 
and the Trustee will update in due course.
(Here you have it. The Trustee NEVER states that 1.2 billion is missing. He does not even back up his claims of an
“ 
apparent shortfall
Yet thehysteric media s states this as a fact. This spin worked.)
The Trustee’s investigative team,
consisting of counsel experienced in broker-dealer liquidations and expert consultants and

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