Open letter to Congress regarding the MF Global Bankruptcy

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) November 10, 2011 -- Dear Congressman and Senator

I am writing to you to ask for your immediate help and intervention to ensure the integrity of the US Financial markets in lieu of the MF Global debacle. The integrity of the markets are at stake as well as the integrity of the USA in the eyes of the financial world.

Segregated client accounts of MF Global are missing upwards of $600 million USD. This money just does not disappear or then according to news reports show up at JP Morgan and then to disappear once again. JP Morgan was a custodial bank for MF Global. JP Morgan had repurchase agreements with MF Global. Were funds sequestered from MF Global Clients by JP Morgan to make up in short falls? Does the US Financial system allow stealing of segregated funds at one institution by another?

These segregated accounts are no different than personal or corporate bank accounts or even stock market accounts. These accounts were (possibly) violated and a large amount of assets are missing.

What is worse is the violation of the Commodity Exchange Act, which states that in the event of a FCM bankruptcy client funds are to be handled separately from the firm assets and given priority. It is questionable what transpired, however 50,000 customer accounts have been frozen and hundreds of millions of dollars are unaccounted for. The analogy is very simple. It is as if a bank makes bad loans and then pillages their customer’s accounts to remedy the situation or if a Stock brokerage company makes bad investments and then withdraws monies from their client’s accounts. If this is allowed to continue there will be NO Trust in the markets. Nothing will be safe!

The implications are severe to farmers to hedgers of virtually aspect of our human existence. This is not just a group of commodity trading speculators. This is the basis of the US economy.

The fact is that the regulators were not regulating nor are they acting now in order to protect the integrity of the financial markets. I implore you to take a stand to protect the financial markets. I implore you to

1.Demand that the trustees of the MF Global release at least partial of the frozen cash

2.Open immediately investigations of JP Morgan and how segregated accounts & money supposedly appear and disappear.
3. Open immediately an investigation of the regulators who failed their task in regulating the markets.


This can spin out of control very quickly. Myself and countless others are counting on you to protect the integrity of the US Financial markets.

Andrew Abraham
Abraham Investment Management

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