Daily Ticker

“Your Money Is Not Safe”: Gerald Celente on the Moral of MF Global’s Collapse

Follow Yahoo!'s The Daily Ticker on Facebook here!

Jon Corzine returns to Capitol Hill Thursday for the latest hearing on the implosion of MF Global, this time before a House Financial Services subcommittee.

As the search for the "missing" $1.2 billion in client funds rolls on, Gerald Celente has a message for all Americans: "If you don't have your money under your pillow or mattress, you don't have it all. It's not safe."

Along with hundreds of other MF clients, Celente is scrambling to get his money back -- he claims he had over $100,000 in a brokerage account at the doomed firm.

"This is really huge," he says, noting MF Global's filing is the 8th-largest bankruptcy in U.S. history and this episode is the first time clients of a regulated commodities futures brokerage have seen their funds "disappear" because of a broker's failure, rather than their own bad trades.

MF's collapse and the "missing" client funds may seem like a one-off -- an isolated incident. Celente's bigger point is that banks and brokerage firms can legally use client funds (i.e. your money); that "comingling" funds is neither rare nor a scandalous practice.

The Scandal Is What's LEGAL

Indeed, just because money was transferred out of customer accounts to MF's broker-dealer account that "doesn't mean it was illegitimate," Jill Sommers, who is heading the Commodity Futures Trading Commission's review of MF Global, tells Reuters.

Reuters further quotes Sommers as claiming the CFTC is "far enough along the trail that we know where all the money went. Now it's just finding out which ones of those transactions are legitimate and which ones of them are illegitimate."

To Celente, the whole episode is illegitimate; another example of crony capitalism run amok in America.

The trend watcher totally dismisses Corzine's claim that he "never intended to break any rules" as Clinton-esque double-talk. Furthermore, he believes regulators have gone soft on MF Global because of Jon Corzine's connections at the highest levels of government. A former N.J. Senator and Governor, Corzine has also been a major fundraiser for President Obama.

"Nobody can get away with this kind of nonsense other than if you're a member of the 'White Shoe' boy club and really on the top," he says. "If [MF] were a small brokerage firm...SWAT teams, the FBI they'd be cleaning the joint out. It'd be a whole different story."

To Celente's point, there've been no indictments to date and Corzine was generally handled with great care at a Senate hearing earlier this week.

But Thursday's House hearing is likely to be much more contentious, given the House is under Republican control and Terrence Duffy, CEO of the CME Group, contradicted Corzine's testimony that he didn't know of any illegal transfers of client funds to MF's broker-dealer account.

"The only thing I can tell you is that MF Global transferred customer money to its broker dealer, and that Mr. Corzine was aware of the loans being made from segregated accounts," Duffy said under oath.

There is some chatter that Duff's testimony puts Corzine at risk of a perjury charge. Either way, don't expect Republicans on the House subcommittee to handle Corzine with kid gloves.

Aaron Task is the host of The Daily Ticker. You can follow him on Twitter at @aarontask or email him at altask@yahoo.com

  • Markets Right Now: Banks lead US stocks higher on rate hopes Associated Press - 20 minutes ago

    The latest on developments in global financial markets (all times local): 11:45 a.m. Banks are leading stocks higher at midday as investors hope for higher interest rates. Wells Fargo, the nation's largest ... … More »

  • Oil down nearly 2 percent on surging OPEC output, strong dollar
    Oil down nearly 2 percent on surging OPEC output, strong dollar Reuters - 31 minutes ago

    Oil prices fell nearly 2 percent on Monday, snapping two consecutive days of gains, on caution over galloping Middle East crude output and a stronger dollar boosted by speculation of a U.S. rate hike by the year-end. Iraq, which has exported more … More »

  • U.S. assets gain, European shares dip on rising Fed rate hike bets
    U.S. assets gain, European shares dip on rising Fed rate hike bets Reuters - 33 minutes ago

    U.S. stocks rose on Monday, helped by gains in financial shares after comments from top Federal Reserve officials on Friday bolstered expectations for an interest rate hike from the U.S. central bank this year, while European shares dipped and the … More »

  • 'IS suicide bomber' kills 71 army recruits in Yemen
    'IS suicide bomber' kills 71 army recruits in Yemen AFP News - 43 minutes ago

    An Islamic State group militant rammed his explosives-laden car into an army recruiting centre in Aden Monday, killing 71 people in the deadliest jihadist attack on the Yemeni city in over a year. … More »

  • Liz Weston: 5 money myths you probably believe
    Liz Weston: 5 money myths you probably believe Associated Press - 1 hour 16 minutes ago

    Managing money can be complicated, and myths are often born from people's struggles to make it simpler. But simplistic solutions can cost you instead of saving you money. If you believe any of these five ... … More »

  • BOJ Needs Massive Move to Shock & Awe, $2 Trillion Investor Says Bloomberg - 1 hour 25 minutes ago

    “It is how much they do, and whether they can create that kind of shock and awe at this point in the cycle,” said Mark Haefele, global chief investment officer at UBS Wealth Management, in a Bloomberg Television interview, on Monday. “They could … More »

  • Grain lower, livestock mixed Associated Press - 1 hour 39 minutes ago

    Grain futures were lower Monday in early trading on the Chicago Board of Trade. Wheat for Sept. delivery was 10.50 cents lower at $3.7260 a bushel; Sept. corn was 2.25 cents lower at $3.14 bushel; Sept. ... … More »

  • Singapore's GIC buys stake in Vietnam's bank AFP News - 1 hour 41 minutes ago

    Singapore sovereign wealth fund GIC will buy a 7.7 percent stake in Vietnam's biggest bank, both companies said in a joint statement on Monday. GIC signed a memorandum of agreement to buy 305.8 million new shares of Vietcombank, the fund's first … More »

  • Wall St rises as hawkish Fed boosts financial stocks
    Wall St rises as hawkish Fed boosts financial stocks Reuters - 1 hour 49 minutes ago

    Yellen, addressing a gathering of global central bankers on Friday, said the central bank was close to meeting its goals of maximum employment and stable prices, while describing consumer spending as "solid". Yellen gave little indication of when … More »

  • Foreign experts in Egypt to probe Russian airliner crash AFP - 2 hours 4 minutes ago

    Russian and German experts arrived in Cairo Monday to inspect the wreckage of a Metrojet plane downed over Sinai, hoping to pinpoint how it came apart, the aviation ministry said. The Islamic State group ... … More »

  • Jualo receives additional ‘multi-million US Dollar’ in their Series A round
    Jualo receives additional ‘multi-million US Dollar’ in their Series A round e27 - 2 hours 8 minutes ago

    In June, the e-classifieds platform announced a Series A round led by NSI Ventures Last June, e-classifieds platform Jualo announced that it has received a “multi-million US Dollar” Series A funding led by NSI Ventures. Today, the Jakarta-based … More »

  • US stocks higher amid focus on possible Fed rate rise AFP - 2 hours 10 minutes ago

    Wall Street stocks were slightly higher Monday as traders focused on the US July jobs report coming later this week which could, if strong, support an early rate rise by the Federal Reserve. Fed Chair ... … More »

  • Grenade attack on home of Kosovo TV chief over border deal
    Grenade attack on home of Kosovo TV chief over border deal AFP News - 2 hours 20 minutes ago

    A shadowy activist group in Kosovo claimed responsibility Monday for an attack on the home of Kosovo's public broadcast chief, in protest over a controversial border deal. "An explosive device was thrown into the backyard" of Mentor Shala, general … More »

  • Brussels crime lab attacked to 'destroy evidence'
    Brussels crime lab attacked to 'destroy evidence' AFP News - 2 hours 39 minutes ago

    Attackers rammed a car through the gates of Belgium's national crime laboratory on Monday in Brussels and then started a fire in what officials said may have been an attempt to destroy evidence. The incident comes as Belgium remains on high alert … More »

  • Aeroflot flies back into black AFP - 2 hours 44 minutes ago

    Russia's flagship carrier Aeroflot said Monday it had piloted a return to profit after reining in its costs and enjoyed an ascent in passenger numbers among its company airlines. The majority state-controlled ... … More »

  • Exclusive - German trade group slashes exports forecast as Brexit hit looms
    Exclusive - German trade group slashes exports forecast as Brexit hit looms Reuters - 3 hours ago

    Germany's BGA trade association slashed its 2016 forecast for export growth, its head said on Monday, predicting sales abroad by Europe's biggest economy would later stagnate as the delayed impact of Brexit hit home. Global demand for German goods … More »

  • Cyber threat grows for bitcoin exchanges
    Cyber threat grows for bitcoin exchanges Reuters - 3 hours ago

    When hackers penetrated a secure authentication system at a bitcoin exchange called Bitfinex earlier this month, they stole about $70 million worth of the virtual currency. The latest survey of 46 securities exchanges released three years ago by … More »

  • Greek economy grows in second quarter but strong rebound elusive
    Greek economy grows in second quarter but strong rebound elusive 4 hours ago

    Greece's economy grew modestly in the second quarter but weak demand and scant investment mean a strong rebound after years of recession remains elusive a year after the country nearly crashed out of the euro. Rating agencies Moody's and S&P are … More »

  • Global from Day One co-invests in New Zealand firm’s US$5M Series A round
    Global from Day One co-invests in New Zealand firm’s US$5M Series A round 4 hours ago

    Global from Day One is a cross-border technology fund with the majority of capital to be invested in New Zealand and Taiwanese startups Spotlight Reporting, a Wellington-based cloud software company, has secured US$5 million in Series A funding from … More »

  • New suspected MH370 debris found in Mozambique
    New suspected MH370 debris found in Mozambique AFP News - 5 hours ago

    A South African hotelier said Monday he had picked up a piece of aircraft wreckage off the Mozambican coast in the latest possible find of debris from the missing MH370 flight. Mozambique's aviation authorities in Maputo said they had been informed … More »

  • Unbiased New Launch Review – Lake Grande
    Unbiased New Launch Review – Lake Grande Propwise.sg - 5 hours ago

    By KK Tong (guest contributor) 23 July 2016 was the official launch date of Lake Grande, a 99-year leasehold development (lease starting from 9 June 2015) in Jurong West. On the launch weekend, 436 units out of a total of 710 units were sold. The … More »

  • Australia's richest woman considers bid for country's largest ranch - source Reuters - 6 hours ago

    Australia's richest woman Gina Rinehart is partnering with Chinese developer Shanghai CRED to bid for S. Kidman & Co, the country's largest private land holding, a source close to the sales process said on Monday. Rinehart's participation in a bid … More »

  • iPhone spyware spotlights Israel's secretive surveillance industry
    iPhone spyware spotlights Israel's secretive surveillance industry AFP News - 6 hours ago

    The discovery of sophisticated spyware to infiltrate and remotely take control of iPhones without leaving a trace has put a spotlight on Israel's secretive surveillance industry, considered among the world's most advanced. Apple rushed out a … More »

  • China Stock Traders Feel Heat With 774 Probes in Two Months (3) Bloomberg - 6 hours ago

    Liu Shiyu, who was appointed chairman of the China Securities Regulatory Commission in February, has emphasized the need for a tough stance on market excesses. The moves come amid signs China’s policy makers are also looking to cool gains in the … More »

  • SE Asia Stocks-Fall as Fed rate hike signals get louder Reuters - 6 hours ago

    By Aparajita Saxena Aug 29 (Reuters) - Most Southeast Asian stock markets closed lower on Monday after comments from U.S. Federal Reserve Chair Janet Yellen hinting at an interest rate hike weighed on ... … More »

Editors' Picks

Subscribe and RSS

[X]

How to subscribe

Roll over each section to subscribe using Add to My Yahoo or RSS Feed feeds.

Yahoo News offers dozens of RSS feeds you can read on My Yahoo or using a third-party RSS news reader software. Click here to find out more about RSS and how you can use it with Yahoo News.
 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.