Jim Sinclair -Read This
about your street name shares
Jim Sinclair is the Chairman and CEO of Tanzanian Royalty Exploration Corporation (TRX: Altanext NYSE platform, TNX: Senior Toronto Stock Exchange). He is a precious metals and commodities specialist. Some of the highlights of his nearly 50 year career include the founding of Sinclair Group of Companies (1977), which offered full brokerage services. Mr. Sinclair served as a Precious Metals Advisor to Hunt Oil and the Hunt family for the liquidation of their silver position as a prerequisite for the $1 billion loan arranged by the Chairman of the Federal Reserve, Paul Volcker. He was also a General Partner and Member of the Executive Committee of two New York Stock Exchange firms and President of Sinclair Global Clearing Corporation and Global Arbitrage .
He has authored numerous magazine articles and three books dealing with a variety of investment subjects. He is a regular speaker at various commodities related events.
In January 2003, Mr. Sinclair launched, "Jim Sinclairs MineSet," which now hosts his gold commentary and is intended as a free service to the gold community.
"Nothing will unnerve the paper gold shorts more quickly and do more to undercut their confidence than to strip them of the real metal and force them to come up with more hard gold bullion to make good on deliveries. "Stand and Deliver or Go Home" should be the rallying cry of the gold longs to the paper gold shorts
." --Trader Dan Norcini
Quote: Greg Mannarino People Are Going To Be Slaughtered Who Are Not Ready For This Watch Here
My Dear Extended Family,
The Sentinel Ruling is now a legal precedent. In bankruptcy of your bank, broker or fund, you can find your assets in the majority of cases are backing the liabilities of the entity in front of yourselves. This is why you must act to protect yourself.
No one in this financial world is going to do it for you, and few will have the courage to recommend you escape Street Name. The Sentinel Ruling is the law and you can wake up one day and find out that your investments are gone.
The insurance programs will function as long as the incidents of bankruptcy are isolated events.
In a systemic collapse the insurance funds are not capitalized to meet the potential obligations. The guarantor you are relying on will have to be bailed out.
For securities there are only three ways to hold them:
1. Street name.
2. Direct registration.
3. Certificate form.
Anyone advising you to stay with the Street Name option is a babbling idiot not interested at all in your welfare.
In street name the inferred ownership is the broker or bank, not you. In Direct Registration and Certificate form, the distinct ownership is you.
In 99.9% of the cases of retirement accounts the answer is you are in Street Name.
How are your securities held? Do you even know? I dare you to ask!
Do you know what your broker's capital ratio is? Find out as that number is the order of magnitude at which your broker is gambling on with primarily your money. I dare you to ask.
This time around those investors that are too lazy to consider protecting themselves will be demolished.
How would you like your gold shares at $3500 gold, outperforming gold, and one morning you wake up to having nothing anymore? It is because of the Sentinel Ruling that you now are behind the back burner in a bankruptcy situation with any fiduciary.
The system and their minions will do everything to keep you trapped in Street Name. Articles will be published trying to put you back to sleep on this issue.
Wake up, please.
By Tom Polansek and Ann Saphir
CHICAGO | Thu Aug 9, 2012 8:18pm EDT http://www.reuters.com/article/2012/08/10/us-sentinel-appeals-decision-idUSBRE87900T20120810
(Reuters) - A ruling in the case of failed futures brokerage Sentinel Management Group could make it more difficult for customers to recoup money lost in the much larger collapse of MF Global, according to Sentinel's bankruptcy trustee.
A federal appeals court on Thursday upheld a ruling that puts Bank of New York Mellon ahead of former customers of Sentinel in the line of those seeking the return of money lost in the 2007 failure of the suburban Chicago-based futures broker.
The appeals court affirmed an earlier district court ruling that the bank had a "secured position" on a $312 million loan it gave to Sentinel, which turned out to have been secured by customer money.
Futures brokers are required to keep customers' funds in dedicated accounts to protect them from being used for anything other than client business.
However, Thursday's ruling suggests that brokerages can use customer funds to pay off other creditors, Sentinel trustee Fred Grede told Reuters.
"I don't think that's what the Commodity Futures Trading Commission had in mind" with its requirement that brokers keep customer money separate from their own, he said.
"It does not bode well for the protection of customer funds."
Worse, Grede said, is that the ruling suggests that a brokerage that allows customer money to be mixed with its own is not necessarily committing fraud.
That may raise the bar for proving that MF Global Holdings Ltd, under then-CEO Jon Corzine, misused customer funds as it scrambled to meet margin calls to back bets on European debt in the brokerage's final days. A $1.6 billion customer shortfall remains.
Corzine has said he did not know about the transfer of any customer money.
"I'm sure Mr. Corzine's attorneys will get ahold of this ruling and use it for all it's worth," Grede said.
A lawyer for Corzine, who has not been charged with any crimes, did not immediately respond to a request for comment.
CORZINE MAY STILL FACE SCRUTINY
CME Group Executive Chairman Terrence Duffy, whose firm was MF Global's frontline regulator, has said MF Global made unlawful transfers of customer money to plug its own liquidity needs.
James Koutoulas, head of the Commodity Customer Coalition, which has been an advocate for MF Global clients, said Corzine could still face scrutiny for the transfers.
The Sentinel ruling is "not an end-all-be-all acquittal for Corzine," he said.
Sentinel allegedly pledged hundreds of millions of dollars in customer assets to secure an overnight loan at Bank of New York Mellon, leaving the bank in a secured position but Sentinel's customers out millions.
Customer funds were allegedly moved from the protected accounts to other accounts so they could be used as collateral for loans to Sentinel's own trading operations.
The appeals court said that "perhaps the bank should have known that Sentinel violated segregation requirements" but agreed with the district court's earlier ruling that "such a lack of care does not rise to the level of the egregious misconduct" needed to reprioritize a claim.
"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," U.S. Circuit Judge John D. Tinder wrote in the ruling.
The decision was a blow for Grede, who had sought to strip Bank of New York Mellon of its secured position.
Sentinel, whose customers are missing about $600 million, largely managed money for other futures brokers, delivering outsized returns that, Grede says, were juiced up by improperly using customer money to secure loans that went to fund risky trades.
The scheme unraveled when the credit crisis hit in the summer of 2007.
(Additional reporting by Jonathan Stempel in New York; Editing by Gary Hill and Phil Berlowitz)