by Susanne Posel
August 20, 2012
In 2007, the Sentinel Management Group (SMG) collapsed, leaving many
customer segregated funds lost after they had been used as collateral.
After a plethora of lawsuits and creditor
claims, a decision earlier this month in the 7th Circuit Court
placed the banking cartels ahead of customer claims for funds returned.
Essentially, the Bank of New York Mellon (BNYM) sued to be first in
line for return on stolen customer account monies - and won the right by the
US court system.
the mainstream media (MSM), the SMG collapse and subsequent ruling
in favor of BNYM was touted as a difficulty,
“for customers to recoup money lost”.
SMG, a Chicago-based futures broker, had stolen
more than $500 million in segregated customer funds to use as collateral on
a loan to BNYM for in-house proprietary trading operations.
Their books were audited by the National Futures
Association (NFA), however the NFA admitted that they could not understand
the convoluted mess they were provided by SMG to sign off on. And yet they
did; and approved the audit.
BNYM sued SMG to re-coup any monies owed to them. However, these monies were
customer segregated funds that SMG stole and re-hypothecated.
In federal court, John D. Tinder, US Circuit Court Judge ruled,
“that Sentinel failed to keep client funds
properly segregated is not, on its own, sufficient to rule as a matter
of law that Sentinel acted ‘with actual intent to hinder, delay, or
defraud’ its customers.”
This means that once a banking customer deposits
their money into an account with a bank, the funds become property of the
The customer, at the point of deposit,
relinquishes all rights to that money regardless of any laws in place, legal
assurances, claims or guarantees; and this extends from investments to
private checking accounts.
Once the bank has physical possession of your money, they own it and can use
it for any means they deem fit. The veil has been lifted on separation of
customer and bank funds. They are now legally co-mingled.
The bank could use it as collateral (as SMG did), to pay off debts, or place
it on the stock market to bump up their trading with extra cash. And in the
event that the customer allocated funds are lost, the bank does not owe the
customer the money back.
Essentially, once you deposit money in your bank account it is gone.
Fred Grede, SMG trustee remarked:
“I don’t think that’s what the Commodity
Futures Trading Commission had in mind. It does not bode well for the
protection of customer funds.”
The MF Global (MFG) scandal rocked the
investment world because
Jon Corzine, chief executive officer of MF
Global, instructed the transfer of $200 million from their customer
segregated funds to cover the corporation’s overdraft account with JP Morgan
Corzine emailed this order just three days before the official collapse of
MFG. At the same time Corzine was moving customer money, this missing $6.3
billion dollars were used on bets on European indebted nations. As those
European nation’s credit ratings plummeted, JP Morgan profited financially.
Our financial institutions have been
planning for a financial collapse
wherein the US government will not offer assistance.
resolution plans required by the
Federal Reserve Bank, described schemes to have the major
domestic banks remain afloat by selling off assets, finding alternative
sources of funding, reducing risky measures that make a quick buck.
These strategies were to be perfected with,
“no assumption of extraordinary support from
the public sector.”
By selling “non-core assets” without upsetting
shareholders while protecting the monetary system, taxpayers and creditors
is the work of the mega-banks who have contributed solely to the destruction
of the global financial markets.
Bank of America (BoA) and Citibank have
already begun to liquidate some of their assets - an action a bank takes
when they are insolvent. Both mega-banks and credit unions have been
silently altering their deposit/withdrawal policies to deter customers from
emptying out their accounts.
Because the digital record of monies is greater than the physical cash held
by banks, this is a scheme to stave off a “run on the banks”.
the Patriot Act, signed in 2001 by former President
George W. Bush, and extended in 2011 by President
states that all banks must record all banking transactions with photo ID and
fingerprints that will then be sent to an FBI database wherein all banking
information tied to each individual on file can be traced for future
Of recent, when withdrawing cash from an ATM, the daily allotted amount has
decreased with some banks, thereby forcing the customer to go into the
branch and extract the difference with a teller.
At this point, according to
anonymous informants, the customer is taken into a backroom to be questioned
These questions are not only intrusive, they are
Some anonymous sources have said that banking representatives who conduct
the integrations are directed to keep a record of customer responses on an
online application that will be sent to the FBI in conjunction with Patriot
Act mandates on tracking banking activity.
While American citizens sit on the fence about whether or not they even
subscribe to a banking collapse in the US, globalists like
George Soros are
investing heavily in
“unloaded over one million shares of stock
in financial companies and banks that include,
JP Morgan (701,400 shares)
Goldman Sachs (120,000 shares)
The total value of the stock sales amounts to nearly $50 million” and
then purchased 884,000 shares of Gold with
SPDR Gold Trust.
The mega-banks, through Wall Street, are also
acquiring firearms, ammunition and control over private mercenary
DynCorp and "Blackwater” as authorized by the
Department of Defense (DoD)
DynCorp is a military-based private mercenary contractor that provides
(among other services) intelligence training and support, international
security, contingency plans and operations. Ninety-six percent of their
funding is based on annual revenues from the US federal government.
The international branch of DynCorp has operated
as a “police force” even assisting local law enforcement during Hurricane
Named as investors for the amassing of gun and ammunition manufacturers are
Citibank, BoA, Barclays and Deutsche Bank who are pouring money into Cerebus
and Veritas Equity who have taken over private corporations involved in the
controlling riot situations.
The Federal Reserve Bank, one of the heads of banking cartels, has their own
police force which operates as a protective security for the Fed against the
American public. As part of the Federal Reserve Act signed in 1913, the
designation of a Federal Law Enforcement - special police officers that are
exclusively regulated by authority of the Fed (whether in uniform or plain
These specialized police officers (who train
with Special Response Teams) can work in tandem with local law enforcement
or US federal agencies. These officers are heavily armed with semi-automatic
pistols, sub machine guns and assault rifles as well as body armor.
Just this month, the Kaspersky Lab discovered
Gauss, a banking surveillance
virus believed to have the capability of stealing money out of customer’s
bank accounts, as well as spying on banking transactions, stealing login
information for social networks, email and instant messaging.
So far, Middle Eastern banks have reported
having been affected by Gauss - however both Citibank and Ebay’s Paypal have
also been infected by this new viral threat to our banking systems.
It is clear that the financial collapse could be imminent.
Banks are not only preparing with contingency
plans, but also amassing a private police force for protection. With the
legalization of stealing from customer secured funds, combined with a
possible banking virus that could provide the perfect cover for an
all-in-one banking holiday, the stage is being set for utter financial
Once all customer funds were electronically transferred into off-shore
accounts, the specialized police forces and hired mercenaries would be
allocated forward to protect the technocrats from retaliation for their
The banking holiday will not come with flashing neon signs.
Our warnings are right in front of us, if we
choose to see them.