RED ALERT: It's Open Season on All Customer Funds

[Sleeping Cobra]

The NFA in collusion with the banksters, government and judiciary have achieved their goal. The entire concept of "customer segregated funds" is officially, completely, legally dead.

Guys, it is OVER. I know that many of you are still cowering in normalcy bias, unable to deal with reality, unable to face the world as it is, but you have GOT to snap out of it. The marketplace is DESTROYED. You CANNOT be in these markets. All legal protections are now officially gone.

Do you remember how I told you about the Ponzi scheme that imploded in 2007 called "Sentinel Management Group" that stole over $500 million in customer funds? The NFA was the auditing regulator of Sentinel, and the NFA admitted after the Sentinel Ponzi imploded that they signed off on their audits even though the NFA claimed not fully understanding Sentinel's books or accounting methods. In other words, the NFA didn't really audit Sentinel at all - they just PRETENDED to audit them, drew up some forms, had some robosigners sign off, and then just hoped that when the shit hit the fan, everyone in the industry would be so terrified of the NFA that no one would hold the NFA accountable for their criminal malfeasance - or even talk about it.

Sentinel took customer segregated money and fraudulently used it as the collateral on a loan from Bank of New York Mellon for $312 million to fund their own in-house proprietary trading operations. When the Sentinel Ponzi collapsed, BNYM sued to go to the front of the line of creditors - ahead of the customers of Sentinel whose money was fraudulently used as collateral, which has now been "linguistically sanitized" into the word "hypothecated".

The federal appeals court ruled yesterday that not only does BNYM stay at the front of the line, but that using customer segregated funds as collateral is NOT a crime, and that co-mingling customer segregated funds with proprietary funds is NOT fraud.

More: http://barnhardt.biz/

[Dennis Olson]

This is directly related to this thread:

http://www.timebomb2000.com/vb/showt...(Ann-Barnhardt)

[Troke]

The NFA was the auditing regulator of Sentinel, and the NFA admitted after the Sentinel Ponzi imploded that they signed off on their audits even though the NFA claimed not fully understanding Sentinel's books or accounting methods. In other words, the NFA didn't really audit Sentinel at all - they just PRETENDED to audit them, drew up some forms, had some robosigners sign off, and then just hoped that when the shit hit the fan, everyone in the industry would be so terrified of the NFA that no one would hold the NFA accountable for their criminal malfeasance - or even talk about it.


More: http://barnhardt.biz/

Heh. The odds are quite good that not even Sentinal understood its accounting methods. All that was required is that the method show a profit until one day the money ran out. And they went from there.

[mzkitty]

The internet is going crazy with this one.

[blueridge]

Just like a ball of yarn slowly unraveling.

Guess what's left at the very end of the ball?

[Vegas321]

Yeah, if some didn't know this was the end of the markets, this is the period!

[Hansa44]

The internet is going crazy with this one.

Could you post some of what you're observing and maybe a link to some juicy stuff.

[mzkitty]

Could you post some of what you're observing and maybe a link to some juicy stuff.

Here's the search I did, probably lots more by now too:

https://www.google.com/search?q=Sent...ient=firefox-a

[the watcher]

Wow, just wow. For this one we need this gif. In essence, now any pension funds, etc can be gambled on wall street. What this shows me is they are REALLY hurting for fresh currency, an injection of money to keep things afloat. .They're going to need a bigger boat.

[NC Susan]

[My Adonai]

Does this affect every investment, such as IRA's, retirement and mutual funds?

[night driver]

Eventually.

Not too far into the future.

[Countrymouse]

What about bonds?

Corporate?
Municipal?
Treasury?
Tax-Free?

[twincougars]

"Investments" always were a crap-shoot, but your odds of making a profit, or even getting back your original capital, just went down. I pulled everything I had out of the stock market a month ago. Don't "invest" unless you can really afford to loose everything you invested, and stay away from highly leveraged investments. The profits are magnified, but, so are the losses, where you can loose more than you put in, and right now most people would probably find themselves in the loss category.