mf global and etrade, page-50

A few points for clarification:

1. When an Etrade account is opened, they will open a corresponding bank account in your name with ANZ. The money is kept in the ANZ account with Etrade acting as trustee with rights to act as your agent is transactions. (If Etrade pulls money out without your permission or requirement - this will be theft and someone will go to jail).

2. Funds in bank accounts are generally guaranteed by the Australian Government under the Guarantee Scheme for large deposits and wholesale funding. The guarantee is up to the sum of $250,000 (this fighure was $1,000,000 during the 2008 financial crisis). Further information is available at http://www.guaranteescheme.gov.au/

3.MF Global risked the farm and lost. However, it now seems that clients money of US$660 million has been found in a JP Morgan account. This remains to be confirmed.

4. The situation as far as Etrade is concerned should have been handled much better in respect to it’s clients. It sure leaves a bitter taste in my mouth (even though I only kept a few hundred dollars with MF).

Certainly, a wake up call as far as I am concerned!


Disclaimer: The usual, Do your own research etc......