Warning: Get Your Money Out: 'All Legal Bank Deposit
Protections Are Now Officially Gone'
by Mac Slavo: We
Inherited Our Freedom, Now Itís Up to All of Us To Fight for It
manager Ann Barnhardt, who in November of 2011 made
the decision to cease operations of her brokerage firm and return
funds to her customers citing “systemic” problems
within the entire financial industry, has issued a new warning about
the stability of US banks and the safety of individual deposit accounts.
stemming from a recent federal appeals court ruling surrounding
customer funds lost during the 2007 collapse of Chicago futures
broker Sentinel, indicates that individuals who lose deposited funds
because a financial institution improperly manages that money, even
if those funds are supposed to be “segregated” from
other operations of the firm, are essentially left with no recourse
if the firm goes belly-up. According
to the court, a misallocation of those customer funds, “is
not, on its own, sufficient to rule as a matter of law that Sentinel
acted Ďwith actual intent to hinder, delay, or defraud’ its
of the ruling, according to Barnhardt, will affect the monies of
all private individuals who have seen their deposit accounts wiped
out in the collapse of firms like John Corzine’s MF Global
and put all deposit account holders in the country at risk should
their bank be faced with a financial windstorm:
The NFA in
collusion with the banksters, government and judiciary have achieved
their goal. The entire concept of “customer segregated funds”
is officially, completely, legally dead.
is OVER. I know that many of you are still cowering in normalcy
bias, unable to deal with reality, unable to face the world as
it is, but you have GOT to snap out of it. The marketplace
is DESTROYED. You CANNOT be in these markets. All
legal protections are now officially gone.
appeals court ruled yesterday that not only does BNYM stay at
the front of the line, but that using customer segregated funds
as collateral is NOT a crime, and that co-mingling customer segregated
funds with proprietary funds is NOT fraud.
means is that even if Jon Corzine is somehow dragged into court
by private citizens, because you know damn good and well that
the Justice Department will never, ever touch him, Corzine now
has a legal precedent, likely from a bribed or otherwise coerced
Federal Appeals Court, explicitly stating that an FCM can use
customer deposits to pay its debts, and that the customers themselves
are subjugated and have basically no legal right to their
own monies, no matter what the law says, or what legal assurances,
claims or guarantees are made to that customer about their funds
held with an FCM or any other brokerage or depository institution.
The “secured” party at the front of the line will
always be the mega-bank who made the fraudulent
loan using the stolen customer funds as collateral.
words, all customer funds in the United States are now
the legal property of JP Morgan, Goldman Sachs, BNYM, or whichever
megabank is the counterparty on the loans the FCM or
depository institution takes out in order to fund its mega-levered
proprietary in-house trading desks.
Barnhardt via Steve
is specifically designed to protect large financial institutions
that have (purposefully) mismanaged customer funds and used the
hard-earned life savings of Americans to gamble on equities, commodities
and bond markets. If those firms happen to make the wrong bet, as
MF Global, Sentinel and a handful of others have recently done,
depositors who have placed funds with the banks under the belief
that their bank account is securely protected from trading liabilities
are now completely exposed and liable for the incompetence and negligence
of those who engage in market trading.
ruling combined with recent actions by the Federal Reserve and other
government regulators suggests a massive fraud has taken place and
the financial system itself is under extreme strain with the potential
to make the financial collapse of 2007/2008 look like just a training
In recent days,
for example, it’s come to light that the government has secretly
called on the country’s five major banks to prepare
themselves for collapse by creating stress recovery plans to
be used in the event of worst case scenarios.
A few weeks
ago, the Federal Reserve also implemented a new policy for money
market funds held by financial institutions. Per the new policy,
money market funds, which account for some $2.7 trillion in deposits
across the United States, can
be frozen in the event of an emergency or financial panic. This
means that if and when the system does go into a tailspin, at exactly
the time people will want to pull their money out of their bank
account, they will be restricted from doing so.
actions by government regulators, judges and financial institutions
point to one thing: that we have an unprecedented financial collapse
in the making. If such a financial crisis comes to pass it is clear
that the policies and procedures now in place will transfer the
legally owned deposits and money market savings of individual Americans
into the hands of the banks at which those funds are kept.
Get Your Money
investment strategies and what
is money when the system as we know it falls apart.
from SHTF Plan.
Slavo [send him mail] is a
small business owner and independent investor.
© 2012 Mac Slavo
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