morgan is sitting on money against credit lines from m.f. global knowing m.f. global's collapsing knowing those securities are being sold about it really cheap bargain basement prices and that they come from customer accounts and they keep them to begin with it doesn't go into bankruptcy court if this allusion that this money has just been lost continues to play out and continues to get ignored in terms of any form of of legal. we'll repercussions against it j.p. morgan effectively got before bankruptcy court before the bankruptcy ever happened and that it's still going to be in bankruptcy court trying to get whatever the rest of the money is that it feels it's so so it's basically playing both sides but it knew what was going on from before the company went bankrupt and took its chips from the table and has retained them although the regulators don't seem to be either aware of this or publicly acknowledging it how is j.p. morgan taking advantage of insider information not to say confiscating wealth it is stealing money from m.f. global's customers segregate ac

subsidy of m.f. global which would have been under the financial services authority that didn't question where that money came from or how it related to customer funds that basically turned a blind eye which is what it tends to do although again the f.c.c. turned a blind eye to the rest of the almost billion. there is worth a customer funds that also managed to disappear and be misused in misappropriated fraudulently spread about by m.f. global are left to go a little deeper let's bring in j.p. morgan goldman sachs reports now suggest that m.f. global is offering assets to goldman sachs in the days leading up to the firm collapse on october twenty seventh but that j.p. morgan never transferred to funds m.f. global as there was that outstanding one point two billion dollars quite a lot of the brokerage firm out of j.p. morgan so your thoughts on j.p. morgan's role in the m.f. global story nami both are said that look at the one point two billion dollars again for a second that one point two billion is

goal to m.f. global in general it was a significant chunk of what they needed to have in order to keep john course zines bets going goldman sachs received some of those securities we don't know what they are because again we have inept nontransparent regulators running that part of the show that they got probably very cheaply and probably used against some of their own transactions because they also have bets with respect to european sovereigns in derivatives and futures and insecurities so you have a situation where goldman sachs and i mention this on my blog is also the clearinghouse for some of these smaller transactions the customer driven transactions under all six zero six there's a report for those not delineated but that mention that goldman sachs is one of the clearest we have a clear that's been there for from the get go that is basically getting some of these securities not the money not going through to m.f. global to go back to the customers from where possibly and probably the securi

a letter out to m.f. global which was a comfort letter in which m.f. global was so supposed to say that no the funds that you're dipping into our customer funds never got a response from m.f. global so you think that their hands were in the pot in that regard that they sort of never got the comfort level of what they went ahead and sort of took customer collateral we know that the trustee has one point five billion dollars that he has which he could distribute that would get customers about ninety percent whole yet he's holding back on those funds why because it's another m.f. global entity called m.f. global holdings and j.p. morgan is trying to claw back across the balance sheet once again and to grab that grab that money from m.f. global holdings into the m.f. global customer couse yet once again we've louis freeh managing a second bankruptcy but this is all an a in accounting problem when you have trillions of dollars worth of derivatives a small percentage loss results in a in a debt that cannot be covered so customer funds always have to be tappe

global holdings into the m.f. global customers and once again we've louis freeh managing a second bankruptcy but this is all an a in accounting problem when you have trillions of dollars worth of derivatives a small percentage loss results in a in a debt that cannot be covered so customer funds always have to be tapped in that regard and it's not just m.f. global it's as. when it has a bank account and j.p. morgan chase it has a bank account at bank of america that has a brokerage account that is hypothecated aree hypothecated it's everyone that's living in the physical world that is reliant on an accounting system which is broken you rely on oil which is not properly cost accounting we have u.s. military projection one point two trillion dollars a year in total and that is not accounted into the price of oil and we see em populous empire breaking down in middle east north africa we see the us desperate to try to keep global trade active and we all monitor the financial aspects of this breakdown crisis because it'

global fiasco because m.f. global was a brokerage bankruptcy which is not that i'm talking of it has happened many times since i'm thirty eight but what was unique about the m.f. global issue was that the federal regulators and the bankruptcy judge that handled that bankruptcy privileged j.p. morgan over the customers now this is key because what happened was that customers who had money with m.f. global who in other circumstances ordinarily should have gotten all their money back because they hadn't they were having that money in play they simply had it on deposit with them just as you or i would have money on the possible local savings and loan well these customers lost their money to j.p. morgan the government privileged the bank over the individuals who had money and they lost money that was rightfully theirs and this is not money that they had a margin or that they had put on jets or any sort of anything like that rather it was money that they simply have with m.f. global but that was they are now the prob

wanted to change the rules by which a firm like m.f. global could how it invested its customer accounts it wanted to prevent m.f. global from using its customers money to invest in say the debt of sovereign nations well john kors on the former c.e.o. of goldman sachs a former governor of new jersey the former senator of new jersey went to the head of the c f.t.c. who used to work for him and goldman sachs and said you know please let's not bring this issue up before the c.f.d. see now this is not a good time for us this is the way we make money please let's don't change the way this. rule is written and so what did gary gensler do he backed off the c f t c backed off they didn't change the rule and m.f. global then was able to use this customer money any way it wanted basically and now a billion two of it is gone and no one can account for m.f. global one into bankruptcy and three you know a month after m.f. global goes into bankruptcy they passed this new rule called the m.f. global rule which restricts you know what firms like m.f. gl

backed off they didn't change the rule and m.f. global then was able to use this customer money any way it wanted basically and now a billion two of it is gone and no one can account for m.f. global went into bankruptcy and three you know a month after of global goes into bankruptcy they passed this new rule called the m.f. global rule which restricts you know what firms like m.f. global can do with their customers money and i mean it's just every kind of connection yeah i'm sorry i'm sorry i got to go out because we have to hit a break here but. it all makes very much sense and just too little too late i guess to start regulating on what was legal and still made everything go around thanks so much for joining us tonight. my pleasure thank you. for taking a break but we will be right back. to the police corruption. like what a protester nobody seems to know. but never a pepper sprayed the face by part of the argument that they're being overly dramatic. you know sometimes you see a story and it seems so small a plea you think you un

exactly what was taken out of m.f. global's balanchine and your thoughts on the connection with the silver gold m.f. global collapse and what do you see any connection there at the morgue and well you can't dispute it's very odd that those numbers line up that's about all say i think human plight enough for people to think on their own well i will add to that is that i'm remiss and i don't mind being wrong but i really. upsets me because i stated from the get go that if you had a fully paid for warehouse receipt or plain peanut storage on your silver or gold and it was one of the warehouses which is really a bank approved by the c.m.e. that you were safe and that turns out not to be true it looks like it's a buried right now i haven't seen the final ruling it may be on i might have misled just got back from vacation but regardless it's like seventy two percent so you've actually paid for metal you bought it you stored it you've put all your fees into the storage costs and yet you're only going to get seventy percent on

morgan m.f. global accounts of buying physical and this is causing the near term price to get higher than the out outward prize so-called backwardation and this trend is clear indication of the silverball market is well in place and. and going much higher i would imagine then yeah absolutely and bear in mind as well we have the the second element of this which is the fact that eric sprott is back in the market for three hundred million dollars whether physical of course when he announced his first purchase of physical in think it was october of twenty ten the price is around the sort of eighteen dollars twenty dollars level and when you consider when you think about a market this extreme physical tightness like silva does and someone comes in in dumond's delivery of physical and saw it was no surprise to see that as a major catalyst to the run up to a new fifty dollars took place every period of about six months and i think it's very interesting that we've got backwardation and sprawl back buying

morgan m.f. global accounts of buying physical and this is causing the near term price to get higher than the out outward prize so-called backwardation and this trend is a clear indication of the silverball market is well in place and going much higher i would imagine men yeah absolutely and bear in mind as well we have the the second element of this which is the.

bump up in the mafia organization to get gangsters john karr's on another proven keller from m.f. global former governor new jersey ex goldman sachs terrorist he's got a big payday coming i guess or move him to a new office and give him another role in ransacking the the economy what are your thoughts on john course on at this juncture and google has been talked about to death but i do you know and i mention this on nettles interview i did recently it was a huge deal for people like me to have been sort of following the markets in the background saying ok will what's their next move where they can attack futures are is the theft good and celebrate the fact is john coors on has seemingly gotten. way with what he's gotten away with and the media really giving him a break and a lot of defense and the fact he's looking for an office as you say and was looking for a chateau in france on if you saw that story a few weeks prior to the bankruptcy that it will this all further proves the fact that there is no rule of law in the united states and but i participating in the u.s. if you see n

let's go through london m.f. global went through london because they won't do a member of the tobin tax is the big issue that david cameron has basically ejected the u.k. from the european union now michael thomas said possibly an excess profits tax retroactive to two thousand and seven or some form of tobin tax on trans jackson's or wealth tax the air of money for nothing will be over that's what he says but it won't stop taxes at all because the people the people who have been defrauded and the people who do not get justice because there is a queen there is a prince philip there is a ben bernanke you there is a mervyn king there are these people standing between you and your wealth they have they allow for the bankers to steal your wealth over and over and over and they will not ever do anything to stop it so there will be prosecutions and show trials says michael thomas there will be violence mark my words he says houses burnt property defaced i just hope that this time the mob targets the right people and wal