- Goldman Sachs ($28.17 billion re-hypothecated in 2011),
- Canadian Imperial Bank of Commerce (re-pledged $72 billion in client assets),
- Royal Bank of Canada (re-pledged $53.8 billion of $126.7 billion available for re-pledging),
- Oppenheimer Holdings ($15.3 million),
- Credit Suisse (CHF 332 billion),
- Knight Capital Group ($1.17 billion),
- Interactive Brokers ($14.5 billion),
- Wells Fargo ($19.6 billion),
- JP Morgan($546.2 billion),
- and Morgan Stanley ($410 billion).
When the crunch came for MF Global, their clients collateral was seized and is now gone. It is being suggested that MF Global's bankruptcy has already set off a chain of events which not even all the world's central banks can halt.
Reuters is reporting on the MF Global Re-hypothecation scan here. It explains the whole issue very well. From the article:
A legal loophole in international brokerage regulations means that few, if any, clients of MF Global are likely to get their money back. Although details of the drama are still unfolding, it appears that MF Global and some of its Wall Street counterparts have been actively and aggressively circumventing U.S. securities rules at the expense (quite literally) of their clients.
Look for lots of interest in Canada to be generated by this latest Zero Hedge post.
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