hypothecation

AIG, Lehman, MF Global and Jefferies (JEF)

Why The UK Trail Of The MF Global Collapse May Have "Apocalyptic" Consequences For The Eurozone, Canadian Banks, Jefferies And Everyone Else | ZeroHedge

MoonRocket said:

AIG, Lehman, MF Global and Jefferies (JEF)

Why The UK Trail Of The MF Global Collapse May Have "Apocalyptic" Consequences For The Eurozone, Canadian Banks, Jefferies And Everyone Else | ZeroHedge

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Scary stuff huh. I keep telling them on here to wise up and buckle up. It's all going to unwind big time...just a question of when !

Scary stuff...

Oh, guys, come on... It's a bunch of bullsh1t, like the majority of stuff that ZH comes up with. First it was PRDCs, then it's sovereign CDS, and now ZH is having multiple orgasms over re-hypothecation. The general recipe is simple: take one big, important and sophisticated-sounding word, mix with the inevitable collapse of the global financial system, mix well, et voila.

Based on everything I have heard of MFG issues had NOTHING to do with re-hypothecation, but rather were some "maturity transformation" repo trades gone horribly wrong, because of the correlated outright longs they had in periph debt.