MF Global Singapore kaput liao!!! Anyone kana !!!

[kopiuncle]

SINGAPORE: MF Global Singapore (MFGS) on Tuesday appointed provisional liquidators from KPMG to oversee the winding down of the company.

This is according to a statement released by the Monetary Authority of Singapore (MAS).

MAS said that the provisional liquidation is intended to safeguard the interest of customers and achieve equitable treatment for all creditors after the brokerage filed for bankruptcy in the United States.

Other MF Global entities in the UK and Australia have also been placed into administration.

The Singapore Exchange (SGX) has also announced that customers who have traded on SGX can contact MFGS to close their positions or transfer their derivative positions to other clearing members. SGX said that it will continue to facilitate the orderly transfer of customers' positions on the SGX.

MFGS has established a hotline (6866 6796) to answer customers' queries. The company will also contact stakeholders with information specific to their trading accounts.

MAS also said it will work closely with MFGS and the provisional liquidators to achieve an orderly winding down and equal treatment of all stakeholders. MAS added that it will continue to monitor the situation closely and issue statements to keep all stakeholders informed of developments.

Meanwhile, some Singaporeans with money tied to MF Global sought to withdraw funds on Tuesday. Over the day, about 60 investors visited the offices of MF Global at One George Street, concerned about the security of their money.

Those that Channel NewsAsia spoke with were direct account holders, investing in a derivative product called Contract for Differences (CFDs). They were seeking reassurances over their accounts and some wanted to withdraw their cash balances.

According to investors who visited the offices on Tuesday morning, the situation became heated and they were shouted at by MF Global staff.

Those investors who were keen on cashing out were given a withdrawal form. This option was taken up by those who had positive balances. However, those with still-open trading positions or negative balances were reluctant to do so.

The MF Global bankruptcy also spilled over to investors trading through other brokerages serving as clearing houses, such as Kim Eng, AmFraser and CIMB.

These investors told Channel NewsAsia that their accounts had been frozen and the online trading platform suspended. This meant that they could not close their positions, leaving them vulnerable and unable to react to market movements.

According to dealers that Channel NewsAsia spoke to, MF Global had blocked access to the brokerages.

-CNA/ac

 

[kopiuncle]

how many sinkies kana this time!!!

 

[psy83]

I dont know anything about financial but how bad is this and what is the weight of this company closing down? Will there be a trend ?

 

[Cestbon]

Now only small tip of iceberg see on surface. Bigger iceberg will coming from behind.

 

[kopiuncle]

Now only small tip of iceberg see on surface. Bigger iceberg will coming from behind.

nanbeh lim kopi and watching the disastrous trend come crushing down....the honeymoon is over...geared up for more fartup closures!!!...cash is king...gold is better....nanbeh the whole place is going to go under.....better be prepared....the flood of disaster is coming...nobody believes Bangkok will be flooded...look at Bangkok now. nobody will believe singapore will be overwhelemed and flooded....well limkopi and watch for yourself....where have all our billions and trilliions gone?

 

[Cestbon]

China property market starter to crash next year will be Singapore turn. Price of private property will drop by 20~50% by end of next year.

 

[Spiky]

Customers' funds in MF Global Singapore are supposed to be segregated from the company's funds. This is MAS regulation. So, customers' money is supposed to be safe.

The impact will be customer-dealers and back-office staff will be retrenched.

But the interesting story is the MF Global headoffice:

Someone Is Going To Jail For This: MF Global Caught Stealing Hundreds Of Millions From Customers?
Submitted by Tyler Durden on 10/31/2011 21:06 -0400

Say you are the head back office guy at MF Global, it is the close of trading on Thursday, the firm has already completely drawn down on its revolver, and all the resulting cash in addition to all the firm's cash at your disposal in affiliated bank accounts, up to and including petty cash, has been used to satisfy margin demands due to declining collateral value, yet the collateral calls just won't stop, and impatient voices on the other side of the phone line demand you transfer even more cash over immediately or else risk default proceedings commenced against you within minutes. What do you do? Do you go ahead and tell your superior that the firm is broke even though the co-opted media is trumpeting every 5 minutes that "MF Global is fine", knowing full well you will be immediately fired for being the bearer of bad news, or do you assume that courtesy of your uber-boss being the former head of the Vampire Squid, and thanks to infinite moral hazard which after Lehman made sure nobody would ever fail ever again, that there is simply no way that you will be left without some miraculous rescue, if only you can last one more day, and as a result proceed to "commingle" some client funds with the firm's cash. It turns out that at MF Global you do the latter... over and over... until you have literally stolen hundreds of millions from the firm's client accounts in hopes that the miracle rescue will come on Friday... then over the weekend... and then you realize no miracle is coming, partly because your actions have been exposed, partly because miracles only exist in fairy tales. The next thing you know, your firm is bankrupt and hundreds of clients are about to learn that all their money is gone. Poof. This is not a fictional tale. This is precisely what very likely happened at MF Global in the past 72 hours. And someone has to go to jail. That someone, if indeed this criminal act is proven to have taken place, should be none other than Jon Corzine himself.

The sad truth of just how low Wall Street has fallen comes to us courtesy of the New York Times:

Federal regulators have discovered that hundreds of millions of dollars in customer money have gone missing from MF Global in recent days, prompting an investigation into the company’s operations as it filed for bankruptcy on Monday, according to several people briefed on the matter.

The revelation of the missing money scuttled an 11th hour deal for MF Global to sell a major part of itself to a rival brokerage firm. MF Global, the powerhouse commodities brokerage run by Jon S. Corzine, had staked its survival on completing the deal.

As for the details:

What began as nearly $1 billion missing had dropped to less than $700 million by late Monday. It is unclear where the money went, and some money is expected to trickle in over the coming days as the firm sorts through the bankruptcy process, the people said.


But regulators are examining whether MF Global diverted some customer money to support its own trades as the firm teetered on the brink of collapse. If that was the case, it could violate a fundamental tenet of Wall Street regulation: Customers’ money must be kept separate from company money.

And just like in the Lehman collapse where tens if not hundreds of international prime brokerage hedge fund clients, due to no fault of their own, found themselves insolvent after their cash ended up being caught at the London Lehman office (the details of how that money was illegally transferred from London to the US is a different topic entirely) and never to be seen again except to satisfy general unsecured claims, so thousands of MF clients are about to realize that money they thought they had, even if completely unencumbered with other assets, read pure cash, read money not at risk, is now gone forever, and they will have to wait years until the bankruptcy process determines if the claim deserves priority status to the unsecured bondholders. Best case: assume a 70% haircut on the money, if it is every to be seen again at all.

So who can be sued? Who can be blamed for this malicious and purposeful criminal act? Why everyone from the back office clerk presented in the thought experiment above, all the way up to the man at the very top, Jon himself, who, like in every other act of Wall Street impropriety will plead stupidity and deny he ever knew of this crime. Unfortunately, our criminal regulators, who will be just as complicit in clearing him of all wrongdoing, will aid and abet this latest destruction of faith in US capitalism.

What happens next? Why customers at all other brokerages, all other exchanges, afraid that their money will suffer the same fate as MF, even if they transact with perfect solvent clearers and agents, will proceed to pull their money, as they know they have nobody to trust but their own prudent and forward looking actions. Which in turn will start the kind of liquidity drain that killed not only Lehman, but froze money markets, and with that brought the complete capital markets to a standstill, only to be thawed after the Fed pledged multiples of the US GDP to rescue Wall Street in October of 2008.

And that, dear reader, is called unintended consequences, and how the bankruptcy of a small exchange can avalanche into a crippling Ice Nine of what is left of capital markets all over again, courtesy of crony capitalism, rampant criminality and a regulator and enforcement body that is more fascinated with midget porn than any regulating or enforcing of the very firms it hopes to get an assistant general counsel job from in a few short years.

 

[johnny333]

Customers' funds in MF Global Singapore are supposed to be segregated from the company's funds. This is MAS regulation. So, customers' money is supposed to be safe.

.

In the US the same rules apply in that customers funds are supposed to be segregated. If MF Global broke the rules, ALL investors are in the same boat.

 

[krafty]

dun know. dun care. i already sold all my shares last friday.:p

 

[johnny333]

dun know. dun care. i already sold all my shares last friday.:p

I don't have anything to do with MF Global but it is contributing to the poor market sentiments:( Same thing with Greece

 

[middaydog]

sold all my shares last friday.:p

luki boh?

 

[GOD IS MY DOG]

those in CFDs all money gone liao lor.....................basically, CFDs.................you're just betting with the broker............just like in the casino................

casino gone broke....................how to pay you ?

 

[cass888]

dun know. dun care. i already sold all my shares last friday.:p

Fucking krafty aka hotbot. What shares you got? Probably only the 100 Singtel shares you bought with your CPF account.

 

[Muthukali]

End of the day, MUST BE THE ANG MOS.

 

[hurley]

see if tan kin lian come out and help singaporeans like the last time when lehman brothers collapsed