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More "segregated" customer accounts disappear
$200 million up in smoke
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More disappearing customer funds
When you give your money to a brokerage firm, your money and anything you buy with it is supposed to go into an untouchable segregated account.
It's your money and no one else is supposed to touch it, let alone remove it from your account.
That's the theory at least.
Here's the reality: Another major futures brokerage company has dipped into segregated customer funds and made them disappear, this time to the tune of $200 million .
In case it's not obvious by now, the basic foundations of the financial system are coming apart at the seams.
The key phrase of our time: "counterparty risk"
Look it up. Understand it. Ponder it. And be aware of all the situations in your life and in the economy at large where people are taking the stability and integrity of their counterparties for granted.
Word to the wise: In this day, you can't afford to take counterparties to your financial dealings - brokers, insurance companies, banks - for granted any more.
Note that JP Morgan is again involved in cleaning up - for profit - a massive financial scam that they had the means to be aware of before the collapse.
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