"The way I read it was that basically you no longer have property rights. If you have your money in any (US) financial institution, you now have no property rights because in a crisis situation a bankruptcy judge now has the right to say that all of this speculation (by the banks and brokers) takes precedence over your savings."
W. E. Pollock
W. E. Pollock
This is an enlightening discussion on the precedent set in the Sentinel ponzi scheme case that places customer money in brokerages at risk by destroying the principle of the primacy of the customer money, customer segregated funds.
There is an Orwellian sounding distinction made by the Courts between 'stolen funds' and 'misappropriated funds' that seems to provide the TBTF banks and their cronies a license to loot the financial system with impunity, although it could have been written with Jon Corzine and JPM in mind.
Read More: Jesse's Café Américain