See other Business/Finance Articles
Title: Warning: Get Your Money Out: “All Legal Bank Deposit Protections Are Now Officially Gone”
Source:
[None]
URL Source: http://www.shtfplan.com/headline-ne ... ldman-sachs-megabanks_08122012
Published: Aug 12, 2012
Author: Mac Slavo
Post Date: 2018-08-05 18:07:02 by BTP Holdings
Keywords: None
Views: 837
Comments: 7
Warning: Get Your Money Out: “All Legal Bank Deposit Protections Are Now Officially Gone” Mac Slavo August 12th, 2012 Former money manager Ann Barnhardt, who in November of 2011 made the decision to cease operations of her brokerage firm and return funds to her customers citing “systemic” problems within the entire financial industry, has issued a new warning about the stability of US banks and the safety of individual deposit accounts. The warning, stemming from a recent federal appeals court ruling surrounding customer funds lost during the 2007 collapse of Chicago futures broker Sentinel, indicates that individuals who lose deposited funds because a financial institution improperly manages that money, even if those funds are supposed to be “segregated” from other operations of the firm, are essentially left with no recourse if the firm goes belly-up. According to the court, a misallocation of those customer funds, “is not, on its own, sufficient to rule as a matter of law that Sentinel acted ‘with actual intent to hinder, delay, or defraud’ its customers.” The implications of the ruling, according to Barnhardt, will affect the monies of all private individuals who have seen their deposit accounts wiped out in the collapse of firms like John Corzine’s MF Global and put all deposit account holders in the country at risk should their bank be faced with a financial windstorm:
Post Comment Private Reply Ignore Thread
Top • Page Up • Full Thread • Page Down • Bottom/Latest
#1. To: BTP Holdings (#0)
Not all "financial institutions" are legal banks where deposits up to $250,000 are protected by Federal Insurance Deposit Corp. Don't know if commodity brokers carry insurance. Your brokerage account is insured against the firm going out of business by FDIC to the tune of $250,000 which isn't much, so most firms buy additional insurance for their clients to the tune of $1,000,000. This insurance is for malfeasance but not bad judgment if your broker has power of attorney over your investments. Bottom line: If your brokerage firm goes out of business, you will get your money back but it may take a while.
how much did that former governor of new jersey (corzine?) investment firm return to their investors when they went tits up? no doubt he and donny go way back so it seems to be cool.
Have no idea if the firm returned anything. If Corzine ran a hedge fund, maybe nothing was insured. Hedge fund investors should be prepared to lose their entire investment. Corzine had a well-deserved reputation for stupidity.
Hedge fund investors should know the name(s) and address(es) of their hedge fund manager(s).....just in case. “With the exception of Whites, the rule among the peoples of the world, whether residing in their homelands or settled in Western democracies, is ethnocentrism and moral particularism: they stick together and good means what is good for their ethnic group." They do. Whole lot of paperwork potential hedge fund investors have to fill out in order to qualify. Only the rich with the ability to lose their whole investment need apply.
It only takes a million dollars to be considered a "qualified investor." But a million's not what it used to be... “The most dangerous man to any government is the man who is able to think things out... without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane, intolerable.” ~ H. L. Mencken
True.
The warning, stemming from a recent federal appeals court ruling surrounding customer funds lost during the 2007 collapse of Chicago futures broker Sentinel, indicates that individuals who lose deposited funds because a financial institution improperly manages that money, even if those funds are supposed to be “segregated” from other operations of the firm, are essentially left with no recourse if the firm goes belly-up.
#2. To: Ada (#1)
I used to be in a hurry, then I figured out I was just getting nowhere fast.
#3. To: IRTorqued (#2)
#4. To: Ada (#3)
Hedge fund investors should be prepared to lose their entire investment.
-Alex Kurtagic 
#5. To: X-15 (#4)
#6. To: Ada (#5)
#7. To: Lod (#6)
It only takes a million dollars to be considered a "qualified investor."
Top • Page Up • Full Thread • Page Down • Bottom/Latest