Dimon eyes clawback
Chase leads block of MF distribution
Mf Global’s burned commodity customers turned their ire from Jon Corzine to Jamie Dimon yesterday after MF’s creditor committee, led by Dimon’s JPMorgan Chase, objected to a plan to distribute $2.1 billion to customers who have seen their accounts frozen since Halloween.
As Karl Denninger explains in (much more) polite (than I would use) english -- Even if it turns out that your funds as a customer were stolen through a rank violation of the segregation that is supposed to be in place, JP Morgan and Bank of America, among others, want to be able to claw back your money should their claims against the bankrupt entity prove up. http://market-ticker.org/akcs-www?post=198641
I want to make absolutely sure it doesn't go over your head because if you're wrong about this you could lose everything in your bank and investment accounts -- every single dime.
FDIC / SIPC insured or not.
Recently Bank of America transferred a bunch of derivatives into their banking arm. "A bunch" means somewhere around $80 trillion worth.
Now pay very careful attention, because part of the bankruptcy "reform" law in 2005 placed derivative claims in front of depositors in a business failure - including a bank failure.
If that sounds familiar, it's because...
Bank depositors 2nd in line to their own money
Get. out. of. paper.
If you can't stand in front of it and defend it, you don't have it.
Madoff's customers/victims still have their account ... statements.