Early reports from the NFA and CFTC regarding the PFG segregated client fund theft claimed that $215 million of PFG’s segregated client funds were missing from a US Bank account.
That seems interesting to us considering the fact that PFG clients were informed their segregated funds were held by JP MORGAN, and wiring instructions for clients directed wires to be sent to JP MORGAN CHASE!!

The investigation into the collapse of Iowa brokerage firm Peregrine Financial Group is notable for one name that has not yet turned up: JPMorgan Chase.
JPMorgan, the country’s biggest bank, held customer accounts for Peregrine, doing business as PFGBest. But in alleging that Peregrine took customer money, the National Futures Association and Commodity Futures Trading Commission have claimed that customer money is missing not from a JPMorgan account, but from a U.S. Bank account.

That’s news to some Peregrine clients.

“All of my clients thought the money was at JPMorgan,” said Mark Sackoor, managing director at Abaco Futures in Boynton Beach, Fla. Sackoor was an “introducing broker” for PFG, connecting individual clients with the firm, which held their money.

Brokerage firms like PFG are required under federal regulations to disclose the name of the bank that holds segregated customer accounts, and JPMorgan was the only bank named in that capacity on the PFG Web site. If you were a client who wanted to send money to PFG, its Web site directed you — and still does — to wire the money to a JPMorgan account called the “PFG Inc. Customer Segregated Funds Account.”
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  1. I’m going to plough an old field here for a moment and relate why I began to suspect Fidelity was up to no good.  Late last year, after MFG  failed, Warren Pollock wrote to Fidelity Brokerage asking them to explain their positions of hypothecation and rehypo of accounts, something that was hinted about in vague language in a prospectus. The banksterage did not respond so he interviewed a Fidelity rep who danced around the subject but it was clear that Fidelity was using these systems to leverage income.  It was and is clear that this placed account holders at risk in a manner not especially different than MFG and PFG. My run in with Fidelity was due my outrage at their terrible returns on MMA accounts with its munificent 1/100 of 1% as well as an extreme overcharge on a wire transfer. What did get my attention was the fact that these wires were routed through, of all banks in the land, JPM, before they hit Fidelity.   You would think that Fidelity was large enough to no longer need  “JPM training wheels” and be able to go it alone. I was wrong. Which means Fidelity or any other firm like it is not SAFE.  JPM will see to it if for no other reason than to safe its own hide in a financial crunch.  The JPM thieves no long cover their tracks or deny their crinimality.

    At this point I am going be just as strident as Ann  Barnhardt. Get out if you can.  Get out even if you can’t or it present a difficulty. It cost me plenty to exit Fidelity over the last 8 months.  When she said GET OUT and called out Fidelity as no safer than any other financial group, her voice was sufficiently loud to get my attention. She is still of the same opinion, only more strident now that we see systemic corruption that even the bankers admit to in double digit percentages.

    When Wall Street admits to its criminal behavior it reminds me of the fong and the scorpion tale.  “You knew I was a scorpion when I climbed on your bank’ (Misspelling intentional)  I believe them now. I was a banker and when someone like this tells he they are a crook, and I saw a boat load in my time,  I push past my normalcy bias and actually call out  the SOB for what he is.   Fidelity is in my rearview mirror and I am glad of it.  I hope that others heeds these words and take action.  The time is nigh to take action and protect yourself. Today we see $500 million in outright theft.  Tomorrow it will be $5 trillion as Europe fails

  2. Here we go again! How many MF Globals are about to breech the horizon? Maby the ‘satelite view’ is gleaned by going through the JPM book of broker-clients. Speaking of MFG … anyone making book on Corzine being prosecuted? It’s a sure bet THAT’LL never happen!

  3. Alcohol and boating, 4 OZ?   Sounds like fun.  Leave the phyzz at home.  Bring your boat to Tahoe and we can has some real fun.  I’ll tell my homies at the sheriff’s department to ignore the yahoos in the hydro.

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