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Tuesday, August 14, 2012

Warning: Get Your Money Out: 'All Legal Bank Deposit Protections Are Now Officially Gone' by Mac Slavo

The warning, stemming from a recent federal appeals court ruling surrounding customer funds lost during the 2007 collapse of Chicago futures broker Sentinel, indicates that individuals who lose deposited funds because a financial institution improperly manages that money, even if those funds are supposed to be “segregated” from other operations of the firm, are essentially left with no recourse if the firm goes belly-up. According to the court, a misallocation of those customer funds, “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.”

Consider the implications of this court ruling.

Posted via email from iPT Perpetual Traveler

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