December 2011 -





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21
Dec 11

U.S. Holds On To Biometrics Database Of 3 Million Iraqis

(Spencer Ackerman)The troops have come home, the flag has been been lowered, and the Iraq War is officially in the past for the U.S. military. But the military is holding on to a major souvenir of the war: a massive database packed with retinal scans, thumb prints and other biometric data identifying millions of Iraqis. It will be a tool for counterterrorism long after the Iraq War becomes a fading memory.

U.S. Central Command, the military command responsible for troops in the Mideast and South Asia, confirms to Danger Room that the biometrics database, compiled by U.S. troops over the course of years, will remain U.S. property. “Centcom has the database,” says the command’s chief spokesman, Army Maj. T.G. Taylor, who says it contains files on three million Iraqis. The U.S.-sponsored Iraqi government, in other words, doesn’t control a host of incredibly specific information on its citizens.

For much of the war, U.S. troops carrying viewfinder-like scanning devices kept digital records of the Iraqis they encountered. Some Iraqis got their unique identifiers recorded because they were suspected insurgents on their way to detention centers. Residents of violent cities like Fallujah would only get to return home from travel if they showed U.S. troops an ID card complete with biometric data. Iraqis underwent iris scans when they wanted to join the police. So did Iraqis who worked on U.S. bases.

It was all part of an effort to answer the war’s most vexing challenge: distinguishing insurgents from Iraqi civilians. And that effort isn’t going away, even after the war technically ended. It’ll be part of U.S. counterterrorism missions for a long time to come.

“Certainly, if someone was in another country or another place and showed up somewhere, we’d compare information to see if it’s someone we had info on,” Taylor explains. For instance, “if they show up in Afghanistan, we collect biometric data [on the individual, maybe] we don’t see them there. But we run it through this database and we see them show up.”

The digital database is the property of Central Command’s intelligence shop in Tampa, Florida. It is conspicuously not in the control of the Iraqi government. Taylor says that the Iraqis might be able to access the database’s contents if they go “through the [U.S.] embassy” in Baghdad.

“Common sense-wise, we still have an interest there in helping our Iraqi partners,” Taylor explains, “and that information might be helpful to them should there be any issues.”

Taylor doesn’t say why the U.S. didn’t hand over its biometrics toy to the Iraqis. But there’s an obvious reason: Iraq’s sectarian divides have not healed. And a database filled with uber-specific information about approximately 10 percent of Iraq’s population could represent a wish list for a death squad, militia or insurgent group — some of which are aligned with Iraqi political parties.

It’s not an idle fear. The day after the U.S. departed, a court beholden to Iraq’s (Shiite) prime minister issued an arrest warrant for the (Sunni) vice president on terrorism charges. “Three of my brothers have been killed because of my participation in building a new Iraq, regardless of all I have done,” the incredulous VP, Tarek al-Hashemi, told Eli Lake of Newsweek. Hashemi, who is Iraq’s highest ranking Sunni, blamed the U.S. for leaving Iraq in Maliki’s hands.

Iraqis aren’t the only ones to wind up in huge U.S. biometrics databases. Afghans, too, have been scanned by the millions. As far back as 2005, detainee biometric data from both Iraqis and Afghans turned up in an obscure Pentagon anti-terrorism database called the Department of Defense DNA Registry. Documents released by WikiLeaks suggest that the U.S. even seeks to collect bio-data on foreign leaders.

Now that Central Command is keeping the Iraqi database, it’s clear that the military isn’t going to get rid of its troves of super-specific data once the wars end. Nor will it trust its nominal local allies to maintain them. (Some in the military have complained to Danger Room in the past that the Iraqi soldiers and cops they train aren’t great at taking eye scans and thumb prints from detainees.) It’s an intelligence tool, Taylor says, not a broad targeting list.

“We have this information, and rather than cull through it all and say ‘bad guy, good guy, bad guy, good guy, it’s better to just keep it, because that would be very time consuming,” Taylor says. “Biometric data was collected on people who worked on the bases. You’re a good guy; you worked here. It’s not like we’re collecting [data] on an enemy.”
Source-http://www.wired.com/dangerroom/2011/12/iraq-biometrics-database/


21
Dec 11

IBM Predicts Mind-Reading Machines

(Fox NY) Century-old technology colossus IBM on Monday depicted a near future in which machines read minds and recognize who they are dealing with.
The ” IBM 5 in 5 ” predictions were based on societal trends and research which the New York State-based company expected to begin bearing fruit by the year 2017.
“From Houdini to Skywalker to X-Men, mind reading has merely been wishful thinking for science fiction fans for decades, but their wish may soon come true,” IBM said in its annual assessment of innovations on the horizon.
“IBM scientists are among those researching how to link your brain to your devices, such as a computer or a smartphone,” it continued.
IBM gave the examples of ringing someone up just by thinking it, or willing a cursor to move on a computer screen.
Biological makeup will become the key to personal identity, with retina scans of recognition of faces or voices used to confirm who people are rather than typing in passwords, the company forecast.
“Imagine you will be able to walk up to an ATM machine to securely withdraw money by simply speaking your name or looking into a tiny sensor that can recognize the unique patterns in the retina of your eye,” IBM said.
“Or by doing the same, you can check your account balance on your mobile phone or tablet,” it continued.
Technology will also be able to produce electric power from any types of movement from walking or bicycle riding to water flowing through pipes of homes, IBM predicted.
Mobile phones will narrow the digital divide between “haves and have-nots” by making information easily accessible and junk email will be eliminated by smarter filtering and masterful targeting of ads people like,

Read more: http://www.myfoxny.com/dpp/news/ibm-predicts-mind-reading-machines-20111221-ncx#ixzz1hBo9wBb6


20
Dec 11

10 Ways The U.S. Gov’t Has Destroyed Its Own Declaration Of Independence

(Activist Post) The irony cannot be escaped that a country that issued a document codifying independence for free citizens, should turn into one that declares outright war on all that signifies independent living and prosperity.

It is not a king this time who is exerting ownership over the land and its people, but it is a similar top-down tyrannical system that employs police state enforcers in much the same manner.

In America, this tyranny has remained largely disguised behind pleasantries and a growing bureaucracy centered around Orwellian safety measures, but those days are over; the king (the tyranny) has returned to make its move from the shadows out into the open square for public view. Its kid gloves have transformed to an iron fist, which always seems to herald the final phase.

The Declaration of Independence has been inverted in 10 key ways:

1. The refusal to assent to law:
He has refused for a long time, after such dissolutions, to cause others to be elected, whereby the Legislative Powers, incapable of Annihilation, have returned to the People at large for their exercise; the State remaining in the mean time exposed to all the dangers of invasion from without, and convulsions within.
He has made Judges dependent on his Will alone for the tenure of their offices, and the amount and payment of their salaries.

These are just a couple of excerpts from the beginning of the list of grievances that set the tone for a criticism of rule by federal force, rather than rule by local law. Currently, we have seen an official elimination of the 4th Amendment in Indiana, which is a clear precedent-setting ruling to say that the State now believes that it owns the property and person of its citizens. TSA groping and sexual harassment anywhere it deems fit, public school surveillance, and a plethora of other federal initiatives have created a top-down managed society promoted through federal grants. These agencies such as the TSA actually believe they rule supreme over the states and sovereign citizens. This is perhaps most pronounced in the federal intervention over the legalization of medical marijuana. We now have a textbook tyranny in America, which operates with two separate definitions of legality: impunity for those in control, and an ever-increasing rule book whereby average citizens are likely to be in violation of something at any given time, and are stripped of their right of representative self-governance.

2. Imposition of bureaucratic rule:
He has erected a multitude of New Offices, and sent hither swarms of Officers to harass our people and eat out their substance.
Regulations and licenses coordinated between private companies and government have been handed down by political and corporate leadership, and have become de facto laws enforced by compromised judges. This has resulted in an almost impossible environment for entrepreneurial success.

Independence has been criminalized, most notably by food safety laws, which have stripped the rights of individual farmers and use of their private land. In fact, there is only one growth industry left: government.

3. Standing armies (military rule):
He has kept among us, in times of peace, Standing Armies without the Consent of our legislatures.
He has affected to render the Military independent of and superior to the Civil Power.
He has combined with others to subject us to a jurisdiction foreign to our constitution, and unacknowledged by our laws; giving his Assent to their Acts of pretended Legislation:
For quartering large bodies of armed troops among us:
For protecting them, by a mock Trial from punishment for any Murders which they should commit on the Inhabitants of these States:
The militarization of local police has been going on since the advent of the War on Drugs. SWAT team raids are now common even on raw milk vendors and natural health practitioners. More than that, Army and Marines have been called to man checkpoints and have been called in for support in any situation deemed an “emergency.” TSA has groped and abused air travelers, and are rolling out to other modes of transportation with their VIPR teams. These actions are anathema to the Constitution of the United States in which the Posse Comitatus Act of 1878 expressly prohibits military operations to be conducted on American soil. Naturally, this is why the National Defense Authorization Act has declared America to be a war zone, thus eradicating that illegal activity and allowing for the military to operate independently.

4. Economic warfare:
For cutting off our Trade with all parts of the world: For imposing Taxes on us without our Consent.

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The policies of the American government have fully emboldened every other nation, except our own. The “trade” spoken of in the Declaration of Independence was based on concepts of free market trade, not free or fair trade. As a perfect example, one study by the Congressional Research Service identified 751 different types of barriers to American exports worldwide. Current policies have built-in exploitation and a lowered standard of living that is unrewarding to American innovation and excellence. It is no mystery, then, why the entire world is becoming poorer. Hidden taxes plague independent small businesses and reward only the governments and mega corporations which benefit from specially written tax loopholes and foreign account holdings to help them pay nothing, while enforcers of the IRS have been unleashed in greater numbers against everyday citizens — soon they’ll even do your taxes for you, or enforce compliance through pre-crime measures.

5. Removal of trial by jury:
For depriving us in many cases, of the benefit of Trial by Jury
This has been made complete by the passage of the National Defense Authorization Act, which contains provisions for American citizens to be detained in America indefinitely without formal charges or jury trial.

6. Permitting citizens to be detained outside America:
For transporting us beyond Seas to be tried for pretended offences: For abolishing the free System of English Laws in a neighbouring Province, establishing therein an Arbitrary government, and enlarging its Boundaries so as to render it at once an example and fit instrument for introducing the same absolute rule into these Colonies.
America has indeed enlarged the boundaries of its sovereign law and jurisprudence by declaring the entire world a war zone in which American citizens under suspicion of loosely defined terrorism can be sent to any other country for interrogation, torture, and detention.

7. Fundamentally altering the role of binding laws of government:
For taking away our Charters, abolishing our most valuable Laws and altering fundamentally the Forms of our Governments: For suspending our own Legislatures, and declaring themselves invested with power to legislate for us in all cases whatsoever.
Government encroachment on civil liberties is now pervasive and obvious. The Constitution and the Bill of Rights is effectively dead; our laws are subject to the interpretation of a selected Super Congress, thus eliminating proper representation; and the office of the president has been given dictatorial power. The fundamental structure of government and its laws has been upended. Peaceful protest against such incursions are being violently oppressed, and our right to free speech has come under attack whether in the physical domain, or the virtual domain of the Internet.

8. Internal war on American citizens:
He has abdicated Government here, by declaring us out of his Protection and waging War against us. He has plundered our seas, ravaged our coasts, burnt our towns, and destroyed the lives of our people.
It should now be clear just how much the USA PATRIOT ACT, and its even worse brethren such as the National Defense Authorization Act have played in the incremental inversion of the Declaration of Independence. As someone recently lamented, “How can I have a Merry Christmas when my own government can kill me?” The U.S. Government has, and it will. The overseas killing of U.S. citizens by drones is something that is ready to come to American soil. The (il)legal framework is now in place, and the precedent has been set to use drones for domestic law enforcement. Meanwhile, other “free” military hardware is being handed out to local police nationwide to further militarize American neighborhoods. Furthermore, documents like the MIAC report of 2009, as well as many other leaked policy papers, are evidence that the federal government views its own citizens as the greatest threat of all.

9. Use of mercenary armies:
He is at this time transporting large Armies of foreign Mercenaries to compleat the works of death, desolation, and tyranny, already begun with circumstances of Cruelty & Perfidy scarcely paralleled in the most barbarous ages, and totally unworthy the Head of a civilized nation.
The behavior of mercenary groups like Blackwater used overseas, as well as paid security forces to protect large domestic corporations like BP during the Gulf Oil disaster are completing the works of “death, desolation, and tyranny” referenced above. They are held unaccountable for their war crimes and atrocities committed abroad, as well as on American soil, while employing foreigners as well. Additionally, public servants such as the NYPD have become more beholden to large banks that contribute to their retirement funds than they are to the people they swore to protect and serve.

10. Use of false flag terror
He has excited domestic insurrections amongst us.
It has been admitted that the Gulf of Tonkin incident, as well as the latest Fast and Furious scandal, were both conducted expressly to bring America to war — whether foreign, or now the domestic War on Drugs. This was done knowingly and premeditatedly to cause increasing strife and economic hardship to American citizens, and to enrich international banks and organizations. This is merely the latest in a long history of American false flag terror that has been used to drum up support for various political and corporate power grabs. This use of criminal acts to spread fear and contrived problems among civilian populations for political power and financial gain is the very definition of terrorism and warfare.

In conclusion, we find it difficult to improve upon, or add anything to the summary of a document created expressly to declare a proper evaluation of the conditions which require immediate action by free people to protect themselves against tyrants.
In every stage of these Oppressions We have Petitioned for Redress in the most humble terms: Our repeated Petitions have been answered only by repeated injury. A Prince, whose character is thus marked by every act which may define a Tyrant, is unfit to be the ruler of a free people.
Source-http://www.activistpost.com/2011/12/10-ways-us-govt-has-destroyed-its-own.html


20
Dec 11

Iowa Governor: If Ron Paul Wins, Ignore It And Look At Who Finishes Second

(Paul Joseph Watson) From rightly heralding the Iowa primary as a crucial indicator as to who will eventually capture the GOP nomination, the establishment has closed ranks and now decided that a Ron Paul victory doesn’t count and that the focus will be on who finishes second.
A Politico article entitled Ron Paul panic seizes Iowa establishment perfectly illustrates the supreme arrogance of the very political elite Paul is fighting against and goes a step beyond Fox News pundit Chris Wallace’s insistence that the Iowa result “won’t count” if Ron Paul wins.
Despite the fact that two out of the last three winners of the Iowa primary have gone on to successfully capture the Republican nomination, the political class have decided that Ron Paul doesn’t deserve the opportunity to build the same kind of momentum, and that a victory for him in Iowa “would do irreparable harm to the future role of the first-in-the-nation caucuses.”
The hierarchy is so petrified at the possibility of a Ron Paul win that the state’s own Governor, Terry Branstad, has pre-empted the result by urging people to ignore Paul if he secures a first place finish and instead concentrate on who comes second.
“People are going to look at who comes in second and who comes in third,” said Branstad, adding, ““If [Mitt] Romney comes in a strong second, it definitely helps him going into New Hampshire and the other states.”
As we have seen from the Republican race thus far, the identity of the frontrunner has changed several different times. Rick Perry, Herman Cain and now Newt Gingrich all saw their campaigns rise and fall dramatically. Ron Paul is the only candidate to slowly build momentum and not suffer any major setback.
Yes, it’s true that Ron Paul’s national figures are significantly lower than both Gingrich and Romney, but the Texan Congressman would have a very real chance of overturning that deficit if his potential victory in Iowa was treated with a modicum of respect, but the establishment are determined not to let that happen. This is why we are now seeing a deluge of whining “Ron Paul can’t win” articles every day.
A D V E R T I S E M E N T

The establishment has gone all out to virtually sabotage the credibility of the primary weeks before it even takes place, terrified that a Ron Paul success could upset the apple cart of the two RINO establishment candidates.
In addition, the Politico piece floats the hoax that a Ron Paul win would ensure an Obama re-election, when in reality Ron Paul has the best chance of beating Obama out of all the Republican candidates.
Isn’t it fascinating that the political class doesn’t consider how Newt Gingrich, who is about as conservative as Mao Tse-Tung, would also cause “irreparable harm” to the reputation of the primary if he won? Their concern for the potential harm caused by a Mitt Romneycare victory is also notable by its absence.
Ron Paul has the most conservative voting record since 1937 – so why on earth should a Paul victory cause “irreparable harm” to Iowa?
His success in the state should be celebrated as a sign that the Republican Party is finally starting to return to its constitutional principles.
Source-http://www.infowars.com/iowa-governor-if-ron-paul-wins-ignore-it-and-look-at-who-finishes-second/


19
Dec 11

No Fear: Memory Adjustment Pills Get Pentagon Push

(Wired) The Pentagon hasn’t come close to solving the PTSD crisis plaguing the current generation of troops. And the top brass looks like it’s ready to try anything — like a major push into a cutting-edge, controversial realm of treatment. One that’d see military personnel popping a pill to wipe away the fear they associate with traumatic memories.

The Pentagon this week announced an $11 million grant doled out to three research institutions, all of them long-time hubs for the military’s ongoing PTSD investigations. Experts at Emory University, the University of Southern California and New York-Presbyterian/Weill Cornell Medical Center will study the effectiveness of D-Cycloserine (DCS). DCS is a pharmaceutical thought to help extinguish fearful memories. It’s usually taken right before exposure therapy, a process that involves recalling traumatic experiences in an effort to nullify the menacing associations that accompany them.

“We already know that exposure therapy is an effective [therapy] for PTSD, and we want to figure out how to optimize it,” Dr. Barbara Rothbaum, who will lead the Emory team’s research, told Danger Room. “I really think that this study will move beyond the theoretical. We can rescue people.”

Exposure therapy is thought to work by allowing patients to revisit traumas in safe settings. Every time the mind remembers an event, it “rewrites” that recollection. By helping a patient rewrite traumatic memories to be less frightening, studies suggest that exposure therapy can significantly improve symptoms like nightmares and flashbacks.

Adding DCS seems to hasten that process, targeting the precise brain pathways responsible for regulating fear responses.

Researchers will look at two different kinds of exposure therapy: Virtual reality, where a patient is fully immersed in digital combat scenarios, and prolonged imaginal exposure therapy, which asks them to simply remember and recount fearful memories. A total of 300 patients, all of them veterans from Iraq and Afghanistan, will partake. They’ll undergo seven individual weekly sessions of one of the therapies. Before each session, half will receive DCS, and the rest will get a placebo.

Experts have already spent plenty of time figuring out how DCS works. It’s been around since the 1960s, when it was used to treat tuberculosis. Now, however, researchers are more excited about the drug’s potential ability to alleviate symptoms of depression, schizophrenia, obsessive-compulsive disorder and, of course, PTSD — without a lifetime of pill-popping.

“Most drugs, you dose every day,” Rothbaum says. “But DCS is only useful during exposure therapy, so you’re taking the drug right before the session. And when your series of sessions end, the medication ends too.”

DCS seems to enhance the brain’s learning process. For PTSD treatment, the drug could, ostensibly, help patients more quickly internalize that, say, driving down a suburban American highway is far different — and less dangerous — than driving on a Baghdad street. The drug also binds to receptors in the amygdala, the region of the brain that governs fear response. So by blocking out fearful reactions while a patient revisits trauma, experts think DCS can, literally, “extinguish” fear right at the source.

Emory researchers have already tried using DCS and virtual reality in humans with PTSD, fear of heights and obsessive compulsive disorder. Since 2006, Rothbaum and a team of experts have been comparing exposure therapy, used along with DCS, Xanax or placebo, in patients. “Results so far are positive,” Rothbaum says, though they haven’t finished analyzing the data.

That said, results from other human studies on DCS aren’t encouraging. Just last year, several disappointing trials using DCS were presented by researchers assembled at the International Society for Traumatic Stress Studies conference. “The early results are not as positive as we [had] hoped,” noted Dr. Charles Marmar, head of the psychiatry department at NYU, of his team’s study that combined DCS with cognitive behavioral therapy.

But even a glimmer of hope seems to be enough for the Pentagon. So far, what they’ve tried to treat PTSD — which afflicts at least 250,000 of this generation’s soldiers — isn’t working. Conventional approaches, like antidepressants and behavioral therapy, have been a massive failure. So it makes sense that military officials are increasingly open to out-there ideas: They’re already funding research into yoga and acupuncture, neck injections and “digital dream” computer programs — although promising approaches taking advantage of “illicit” substances, like marijuana and ecstasy, have thus far been nixed.

Of course, this latest study will be bigger and more thorough than its failed predecessors. It also builds on years of animal research suggesting that DCS has potential. And there’s no doubt the project is calling on some of the Pentagon’s top civilian scientists. Dr. Rothbaum has been evaluating PTSD treatments, including preliminary studies on DCS, for decades. And Dr. Albert “Skip” Rizzo, from the University of Southern California, pioneered the use of virtual reality therapy to mitigate PTSD symptoms.

Not to mention that this research team will also be conducting genetic tests on every patient. In particular, they’ll be looking at a gene dubbed “BDNF.” Experts already know that a variant of the BDNF gene can make fear extinction tougher. By comparing patient results to genes, Rothbaum says they hope to “figure out what’s the best treatment approach, and whether DCS can really rescue those patients, where maybe therapy alone can’t.”

Of course, the idea of using drugs to tweak memories isn’t without controversy: An online debate flared last year among two camps of neurologists and neuroethicists, arguing over whether the existence of such drugs would “alter something that makes us all human,” or open a Pandora’s Box of illicit use “by people doing things they’d like to forget themselves, or that they would like others to forget.”

Then again, those debates hinge on DCS, or some other memory extinguisher, actually working. DCS’s efficacy is far from proven. And earlier research efforts that tested supposed “fear-extinguishing” drugs, most notably a series of much-touted, Pentagon-funded studies on Propanolol at Harvard, have all been disappointments.
Source-http://www.wired.com/dangerroom/2011/12/fear-erasing-drugs/


19
Dec 11

Gingrich Collapses In Iowa As Ron Paul Surges To The Front

(Atlantic Wire) A new poll from Public Policy Polling shows that Ron Paul has taken the lead in the Iowa caucus race, while Newt Gingrich’s support is fading fast. A different Gallup poll shows Gringrich still holding the lead, but slipping, while The New York Times has Paul in the lead as well.

Gingrich has seen his numbers in the PPP poll drop from 27 percent to 14 percent in just three weeks, while his favorability rating is now split at 46 percent for to 47 percent against, the worst of any candidate not named Jon Huntsman. That’s quite a fall for someone who looked to be running away with the state and taking charge on the national level.

Mitt Romney has also seen his numbers tick up slightly (to 20%), putting him just behind Paul (23%) for second place. The poll measured voters who are planning to vote in the Republican caucus.

Perhaps the most telling secondary question was, “Do you think Newt Gingrich has strong principles?” Only 36 percent say that he does, but for Paul that number was 73 percent.

The bad news for Paul, however, is that when asked for their second choice for President, only 9% said they would vote for him after their preferred candidate. That means if supporters of any of the second-tier candidates sense defeat and decided to abandon their choice at the last minute, those votes are more likely to go to Romney. Even if Romney doesn’t win, the stronger than expected showing could be the snowball that starts a primary avalanche for him.

One other tidbit from the PPP poll, the first question about Barack Obama asked if the respondents think he was born in the United States. Fifty-two percent either said he was not or they’re not sure.
Source-http://www.theatlanticwire.com/politics/2011/12/gingrich-collapses-iowa-ron-paul-surges-front/46360/


18
Dec 11

North Korean Leader Kim Jong Il Dead

(AP) Kim Jong Il, North Korea’s mercurial and enigmatic longtime leader, has died of heart failure. He was 69.

In a “special broadcast” Monday from the North Korean capital, state media said Kim died of a heart ailment on a train due to a “great mental and physical strain” on Dec. 17 during a “high intensity field inspection.” It said an autopsy was done on Dec. 18 and “fully confirmed” the diagnosis.

Kim is believed to have suffered a stroke in 2008, but he had appeared relatively vigorous in photos and video from recent trips to China and Russia and in numerous trips around the country carefully documented by state media. The communist country’s “Dear Leader” – reputed to have had a taste for cigars, cognac and gourmet cuisine – was believed to have had diabetes and heart disease.

“It is the biggest loss for the party … and it is our people and nation’s biggest sadness,” an anchorwoman clad in black Korean traditional dress said in a voice choked with tears. She said the nation must “change our sadness to strength and overcome our difficulties.”

South Korean media, including Yonhap news agency, said South Korea put its military on “high alert” and President Lee Myung-bak convened a national security council meeting after the news of Kim’s death. Officials couldn’t immediately confirm the reports.

The news came as North Korea prepared for a hereditary succession. Kim Jong Il inherited power after his father, revered North Korean founder Kim Il Sung, died in 1994.

In September 2010, Kim Jong Il unveiled his third son, the twenty-something Kim Jong Un, as his successor, putting him in high-ranking posts.

Traffic in the North Korean capital was moving as usual Monday, but people in the streets were in tears as they learned the news of Kim’s death. A foreigner contacted at Pyongyang’s Koryo Hotel said hotel staff were in tears.

Asian stock markets moved lower amid the news, which raises the possibility of increased instability on the divided Korean peninsula.

South Korea’s Kospi index was down 3.9 percent at 1,767.89 and Japan’s Nikkei 225 index fell 0.8 percent to 8,331.00. Hong Kong’s Hang Seng slipped 2 percent to 17,929.66 and the Shanghai Composite Index dropped 2 percent to 2,178.75.
Source-http://hosted.ap.org/dynamic/stories/A/AS_KOREA_KIM_JONG_IL?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-12-18-22-08-46


16
Dec 11

Video-The Real Newt Gingrich

(LNN) John F. McManus anaylzes the voting record and actions of former Congressman Newt Gingrich, revealing that Gingrich is not the conservative he portrays himself to be. This is a must see video that touches on Newt’s career and Larry Mcdonald. If you don’t know who Mr. McDonald is please vies his skewed Wikipedia page to get a taste.

http://en.wikipedia.org/wiki/Larry_McDonald


16
Dec 11

Corporate Sponsored Internet Bill Will Turn YOU Into A Criminal

(Wired) The House Judiciary Committee debated the controversial Stop Online Piracy Act for hours Thursday — and despite protracted criticism of the bill from the nation’s leading internet engineers and companies, lawmakers repeatedly rejected attempts to water-down the bill.

About five hours into the 11-hour hearing, the committee voted 22-12 to reject an amendment that would do away with the bill’s most controversial provision that lets the Attorney General order changes to core internet infrastructure in order to stop copyright infringement.

Despite that vote, members on both sides of the political aisle also expressed reservations that the internet-blacklisting legislation was moving too fast.

“I would just ask: Why is there this rush?” Rep. Dan Lungren (R-California) said. He mentioned there were exigent circumstances when lawmakers approved the Patriot Act weeks after 9/11, but none existed here. “For the life of me, I can’t understand it.”

Rep. Zoe Lofgren (D-California) had similar thoughts, and added that the measure went too far. “We never tried to filter the telephone networks to block illegal content on the telephone network, yet that is precisely what this legislation would do relative to the internet.”

The legislation’s most vocal backers are the recording and movie studios, who say online piracy is killing their business. The measure’s detractors are civil liberties groups and internet architects who say the bill amounts to censorship and a fundamental alteration of the internet itself.

At the outset Thursday, lawmakers demanded that the entire 70-plus-page bill be read into the record. It took a House clerk an hour to read Rep. Lamar Smith’s SOPA bill, which is an amended version of legislation he introduced last month.

“While the internet should be free, it should not be lawless,” Smith, the committee’s chairman from Texas, said.

The measure effectively grants private companies the ability to de-fund websites they allege to be trafficking in unauthorized copyright and trademark goods. The latest version requires a judge’s signature to order ad networks and banks to stop doing business with a site “dedicated” to infringing activities.

What’s more, SOPA originally required ISPs to alter records in the net’s system for looking up website names, known as DNS, so that users couldn’t navigate to the site. Under Smith’s amendment, ISPs would not be required to introduce false information into DNS at the urging of the Justice Department, but they would be mandated to employ some method to prevent American citizens from visiting infringing sites. ISPs, could, for instance, adopt tactics used by the Great Chinese Firewall to sniff for traffic going to a blacklisted site and simply block it.

Rep. Darrell Issa (R-California) urged panelists to remove the DNS and firewall aspects of the bill.

Rep. Mel Watt (D-North Carolina) said he was not a technological “nerd,” but said he did not “believe” security experts who said that the internet would become less secure unless Issa’s amendment was adopted. “I’m not a person to argue about the technology of this,” Watt said before he voted against the amendment. Issa’s amendment failed 22-12.

Stewart Baker, the former policy director of the Department of Homeland Security, said in a paper that he believed SOPA was dangerous, as do some of the internet’s founders.

“The US government has regularly claimed that it supports a free and open internet, both domestically and abroad. We cannot have a free and open Internet unless its naming and routing systems sit above the political concerns and objectives of any one government or industry,” wrote 83 prominent internet engineers, including Vint Cert, John Gilmore and L. Jean Camp.

At last month’s hearing on the bill and on Thursday’s, not one technical expert was called to testify. Many lawmakers urged Smith to continue the hearing to enable the committee to hold another hearing with technical experts. Smith declined.

No vote was taken on whether to send the measure to the House floor as lawmakers debated for nearly 12 hours a host of amendments. Rep. Jared Polis (D-Colorado) proposed a measure that the pornography industry would not enjoy the Justice Department protections of the measure. He said the Justice Department “should protect pornographers last.” That amendment failed, with nine members favoring and 18 against.

Chairman Smith recessed action about 9:30 p.m. EST, saying the hearing would resume at 10 a.m. EST time Friday.

“It’s going to be a long day tomorrow,” he said.

Earlier in the day, lawmakers also defeated an amendment that would have excluded universities and research institutions from having to blacklist sites. So that means those institutions would be included in Justice Department orders demanding Internet Service Providers like AT&T and Comcast to block their customers from visiting infringing sites.

The legislation also gives legal immunity to financial institutions and ad networks that choose to boycott “rogue” sites even without having been ordered to do so.

Smith’s measure, as amended, also clarifies that sites ending in .com, .org and .net are not covered by the bill. Only foreign sites fall under the revised SOPA’s wrath.
Source-http://www.wired.com/threatlevel/2011/12/sopa-stalls/


16
Dec 11

MF Global Black Box: A Minute By Minute Breakdown Of The Doomed Broker’s Last Week On Earth

(Zero Hedge) In order to get to the bottom of every collapse (or death), a forensic analysis of the last minutes of any transition from life to death has to be perormed. So far, we have only had broad strokes of the key events in the last days of MF Global as obviously many of them will implicate the management team in gross criminal behavior. Until now, when courtesy of the CME we have received a full breakdown of every key events in the chronology of MF Global’s last days on earth, starting with October 24, and the rating agency downgrade of the futures broker (the same catalyst incidentally that started the AIG death spiral waterfall… and yet clueless pundits will tell you the ratings are totally irrelevant), and ending with the firm’s filing for bankruptcy protection. Anyone who has any interest in the MF Global collapse, which incidentally should be anyone who has capital in third party possession and thus has counterparty risk, should read this narrative from first to last bullet.

October 24, 2011

Mike Procajlo (“Procajlo”) speaks with Mike Bolan (“Bolan”), MF Global, Inc.’s (“MFGI”) Assistant Controller. Bolan gives Procajlo a heads-up that a downgrade is forthcoming and that the earnings call for MF Global Holdings, Ltd. (“MFGH”), scheduled for Thursday, which is expected to report losses, is being moved up to Tuesday.
Moody’s downgrades MFGH and MFGI.
October 25, 2011

Procajlo speaks with Bolan via phone; Bolan confirms there has not been a customer run on the bank since the downgrade news.
CME senior management, including Kim Taylor (“Taylor”), Terry Duffy (“Duffy”), and Craig Donohue (“Donohue”) are in Florida at the Global Financial Leadership Conference.
Taylor is advised by an MFGI customer of rumors circulating about problems at MF Global (“MFG” with respect to information not given as specific to a particular entity) stemming from OTC activity.
11 a.m.: Taylor speaks with Laurie Ferber (“Ferber”), the General Counsel of MFGH, and Steve Monieson, another MFG employee, who tell Taylor that the rumor about problems at MFG stemming from OTC activity is not accurate. Procajlo speaks with Bolan about OTC questions.
11 a.m.: Taylor, Donohue, and Duffy seek and obtain Jon Corzine’s phone number. They do not recall speaking with Corzine.
11:54 a.m.: Procajlo emails Grace Vogel at FINRA to see if FINRA has any additional concerns or is imposing any additional requirements in light of the downgrade news.
1:30 p.m.: Taylor speaks with Ferber again, who informs Taylor that MFG does not have any large losses attributable to OTC activity.
2 p.m.: CME Audit Department members, including Procajlo and Anne Bagan (“Bagan”), as well as CME Risk Department members, including Dale Michaels (“Michaels”), Amy McCormick (“McCormick”) and Bryan McBlaine (“McBlaine”), speak with Bolan about MFGH’s earnings release and Moody’s downgrade. MFGH’s net losses reported were $192M. The CME employees ask about MFGH’s liquidity resources. Bolan confirms that any further downgrades will only trigger covenants related to interest rates. Bolan also confirms the firm is well-capitalized and states that MFGI has not seen customers looking to transfer.
7 p.m.: At this point, CME is taking the following steps to monitor the situation:
(1) keeping MFGI on daily financial reporting;
(2) monitoring MFGI’s positions, exposure, and customer transfer/segregated funds balance changes for signs of a significant loss of customer confidence;
(3) drafting a “good standing” press release to have ready if necessary;
(4) establishing a process to ensure customers looking for information get answers to their questions;
(5) establishing an industry call process to ensure information flows to other affected clearing houses and regulators; and
(6) considering whether other financial measures are in order, in coordination with other regulatory bodies.
October 26, 2011

4 p.m.: CME arranges an industry call regarding the MFG situation.
6 p.m.: Taylor, Bagan, Tim Doar (“Doar”) and possibly other CME personnel participate in a conference call with Ferber and Henri Steenkamp (“Steenkamp”), the CFO of MFGH. Ferber and Steenkamp give Taylor and Doar the sense that MFGI is actively engaged in conversations with their customers in an attempt to preserve the business.
7:45 p.m.: Taylor emails Ferber regarding CME helping “to ensure a good outcome for MF and your customers. You and your clients are important to us, and the clients’ continued protection is paramount.”
October 27, 2011

MFGI and MFGH are downgraded to junk this day.
Members of CME’s Risk Department — Michaels and Suzanne Sprague (“Sprague”) — as well as Scott Malcolm (“Malcolm”) from CME’s Audit Department — meet with MFGI in New York (planned earlier in the week) to do a risk review, the purpose of which is to talk with the firm about their liquidity and assess the situation. At the time, CME is starting to have concerns that MFGI’s liquidity is drying up.
Michaels, Sprague, and Malcolm meet with a number of individuals from MFGI, including Stephen Hood (“Hood”), MFGI’s Market Risk Manager, Dennis Klejna, MFGI’s Compliance Officer, the CRO Michael Stockman, and the CFO (Steenkamp). Edith O’Brien (“O’Brien”), MFGI’s treasurer, may have been on the phone.
At the conclusion of the meeting, CME- continued to have concerns regarding MFGI’s liquidity and the ability of the company to continue normal operations without a sale of all or part of the business, notwithstanding MFGI’s assurances.
10 a.m.: Procajlo emails Bolan, who is at MFGI in New York, for a copy of the liquidity analysis being prepared by MFGI’s broker-dealer side. Bolan responds saying the analysis will be ready later that day. Procajlo never receives the analysis.
1 p.m.: CME decides to send members of the Audit Department out to MFGI in Chicago. Silmar Ramirez (“Ramirez”) and Jason Guch (“Guch”) arrive at MFGI and request documents to tie out the Daily Statement of Segregation Requirement and Funds in Segregation for Customers Trading on U.S. Commodity Exchanges (“seg. statement”) for the close of business as of 10/26. They start working on tying out the 10/26 seg. statement, which shows excess segregated funds of $116,164,132.
In addition to tying out the 10/26 seg. statement, another purpose of their presence is to have CME people at MFGI to assist in obtaining information quickly if necessary.

The CFTC — Melissa Hendrickson (“Hendrickson”), Lisa Marlow (“Marlow”), and Tamara Durvin (phonetic) (“Durvin”) — is already present on site at MFGI when CME arrives.

CME begins making contingency plans for transferring MFG customer accounts to other FCMs.

2 p.m.: Individuals from MFGH and CME communicate via email to set up a conference call to discuss a number of items including: (1) MFGI’s liquidity; (2) repo counterparties update; (3) any issues with transfers of customers to other FCMs; (4) margin calls resulting from downgrades; (5) amount of segregated assets not currently pledged to a DCO; (6) contingency plans.
2:50 pm: Taylor communicates with Ananda Radhalcrishnan (“Radhakrishnan”), Director, Division of Clearing and Risk, at the CFTC regarding an FCM that has the capacity to take on some portion of MF Global’s business. CME President Phupinder Gill (“Gill”) also communicates with Radhakrishnan via email throughout the day.
3:53 pm: Procaljo emails a letter to Christine Serwinski (“Serwinski”), the CFO of MFGI, Ferber and Bolan stating “Effective immediately, any equity withdrawals from MF Global Inc. must be approved in writing by CME Group’s Audit Department.”
4 p.m.: CME arranges an industry call regarding the MF Global situation.
5:30 p.m.: Ramirez and Guch leave MFGI for the night, having completed work on documents and information supplied by MFGI as of that time.
Evening: Procajlo, Taylor, Doar, Gill and others participate in a call with Ferber and Steenkamp, who are in New York. Ferber and Steenkamp provide assurances that MFGI has appropriate liquidity and also that MFGI is taking steps to reduce its securities inventory (not on the FCM side).

Additionally, CME encourages MFG to pursue a strategic solution for the company. Ferber provides comfort that MFG is aggressively pursuing a transaction.

October 28, 2011

7:30 a.m.: Ramirez and Guch arrive at MFGI and continue trying to tie out the 10/26 seg. statement. They still have not received all of the documents they requested from MFGI and that they need to complete their tie out. They are also working on tying out the Daily Statement of Secured Amounts and Funds Held in Separate Accounts for Foreign Futures and Foreign Options Customers Pursuant to Commission Regulation 30.7 (“secured statement”). CME and CFTC are in communication throughout the day about MFGI’s 30.7 secured computations and MFGI topping up the 30.7 secured assets.
The CFTC — Hendrickson, Marlow, and Durvin — is again present on site at MFGI in Chicago and appears to also be working on tying out MFGI’s seg. statement.

Morning: Duffy receives a call from Radhakrishnan and Gensler. Radhalcrishnan and Gensler tell Duffy that the CFTC has concerns about MFG and ask him about CME’s thoughts with respect to MFG. Duffy tells them that he does not have the information they seek, and suggests they speak with CME Clearing House personnel. Radhakrishnan speaks with Gill later that day.

Procajlo and senior management at CME have another call with MFGH, including Steenkamp and Ferber, who assure CME that they have drawn down all or substantially all of their line of credit — which has a limit of approximately $1.2 billion — but are not yet using the money.

They confirm that MFGH believes finding a buyer is the best option at this point.

3:54 p.m.: MFGI submits its 10/27 seg. statement showing excess segregated funds of $200,178,912.
4 p.m.: CME arranges an industry call regarding the MF Global situation.
6 p.m.: Ramirez and Guch leave MFGI, expecting to come back Monday and finish tying out the 10/26 seg. statement. At this time, Ramirez and Guch do not yet have all of the documents necessary to tie out the 10/26 seg. statement. Based on their review of the documents they have received, they have no reason to believe that the segregated account is out of compliance as of 10/26 close of business.
8:25 p.m.: Taylor emails Radhakrishnan at the CFTC to relay information she received from Ferber. MFGI has a “very motivated buyer” and needs to obtain approvals from the SEC, F1NRA, and CFTC.
October 29, 2011

Procajlo is in communication with Hendrickson of the CFTC via phone about a potential sale of MFGI’s FCM business.
2:30 p.m.: Taylor speaks with Radhakrishnan regarding a potential asset sale of MFGI’s assets. The CFTC is concerned with a transfer because of the CFTC’s rules on bulk transfers, though note that they will waive the rule if an asset sale works out.
3:40 p.m.: Taylor forwards to Radhalcrishnan a Bloomberg News report stating that MFGH’s Board of Directors will be meeting later that day regarding options to sell the company.
4:30 p.m.: Taylor speaks with Radhakrishnan, who states that the SEC told him the FSA in the UK may be starting to panic. Radhakrishnan says he is going to call the FSA to share insights into his thinking and learn FSA’s thinking. Taylor and Radhakrishnan also discuss additional details regarding a potential sale.
7:50 p.m.: Radhakrishnan forwards to Taylor an email chain between Ferber and Radhakrishnan regarding a meeting of MFGH’s Board.
11 p.m.: Interactive Brokers (“IB”) is the leading candidate, looking to buy either the entire business, or possibly just the FCM.
October 30, 2011

8:30 a.m.: Taylor speaks with Paul Brody (“Brody”) at IB regarding details of the potential transaction.
8:45 a.m.: CME is making contingency plans in case the proposed sale falls through.
12:30 p.m.: Taylor receives email correspondence from Radhakrishnan indicating that the CFTC is concerned about having a contingency plan for MFGI if the IB deal falls though.
1 p.m.: Conference call between CME and IB regarding operations issues in the event the sale is completed.
Approx. 1 p.m. – 2 p.m..: Taylor participates in a conference call with the CFTC, SEC, and MF Global.
Approx. 2 p.m.: Taylor, Procajlo and others arrive at CME offices to work on matters that need to be addressed to facilitate the MFGI transaction.
Approx. 2 p.m.: Hendrickson, who is present at MFGI in Chicago, calls Procajlo and tells him that she has seen a draft of the 10/28 seg. statement and it shows a deficiency in the segregated funds.
After 2 p.m.: Ramirez and Guch are sent to MFGI’s Chicago office. Malcolm is sent to MFGrs New York office.
4 p.m.: CME arranges an industry call regarding the MFG situation.
4:18 p.m.: Bolan responds to an email from Procajlo, in which Procajlo had indicated that Malcolm is on his way to MFGI’s office in New York, by stating that MFGI has been working with Hendrickson at the CFTC and that he will update Procajlo later.
Late afternoon or evening: Taylor briefs the CME Emergency Financial Committee concerning MFGI’s status. The CME Emergency Financial Committee is composed of Donohue, Duffy, Taylor, Gill, and CME Clearing House Risk Committee Co-Chairs James Oliff and Howard Siegel.

6 p.m.: MFGI forwards to CME a draft press release announcing deal with IB.

Approx. 6 p.m. and into the evening: Procajlo and Taylor engage in a series of phone calls with Ferber, Bolan and/or O’Brien. Initially, Ferber and Bolan explain that there is an apparent deficiency, which they believe is an accounting error. At some point, MFG representatives state that they believe they found the error and it is on the liability side.
Procajlo calls Ramirez and Ouch, who are at MFGI’s offices in Chicago, to confirm that the accounting error has been identified. Ramirez and Ouch inform Procajlo that MFGI has not found the error.

Procajlo asks Bolan to explain what the error is in an in-person meeting with Malcolm (CME) and Jerry Nudge (CFTC), who are in MFGI’s New York office.

30 minutes or so later, Malcolm calls Procajlo and tells him that Bolan says the accounting error is based on a $450M mis-posting. The error Bolan described to Malcolm is not on the liability side.
Procajlo again calls Ramirez and Guch to confirm that the accounting error has been identified. Ramirez and Guch again inform Procajlo that they are with MFGI individuals working on the reconciliation, and they are not aware of anyone having found the error.

Taylor and others at CME have calls with O’Brien regarding the potential error.

Approx. 6 p.m. – 7 p.m.: O’Brien, MFGI’s treasurer, calls a meeting with the CFTC, CME, and MFGI employees present at MFGI’s Chicago office and confirms that MFGI has a potentially huge deficiency in the segregated account due to what MFGI states is an unidentified accounting mistake, such as a mis-booking.
Later that evening, while at MFGI, CFTC’s Marlow gives Guch and Ramirez a disc containing documents the CFTC received from MFGI supporting the 10/26 seg. statement. At this time, however, Ramirez and Guch are assisting with trying to locate the accounting error and therefore do not look at the documents to tie out the rest of the 10/26 seg. statement at this time.

8:30 p.m.: Radhakrishnan talks to Gill.
8:40 p.m.: Procajlo sends an email to Bagan and Debbie Kokal (“Kokal”) stating that MFGI’s “explanation of the $900 million shortfall proved to be unsubstantiated.”
8 p.m. – 9 p.m.: Procajlo arrives at MFGI. He speaks to CFTC’s Hendrickson and gets a status update.
Christine Serwinski arrives at MFGI.
9 p.m. – 10 p.m.: Procajlo speaks with Serwinski and O’Brien, who repeat the explanation that the deficiency must be an accounting error and make statements to the effect that it is too big to be anything else.
10 p.m.: Procajlo meets with Serwinski and O’Brien again and asks if MFGI has tried to locate funds MFGI can transfer into segregation first thing in the morning as a contingency in the event that they cannot locate the accounting error.
10:50 p.m.: CME requests via email that “MF not add any further exposure to your house account.” CME does not request MFGI to “liquidate the positions that you have in place, but that you not add to them at this point.”
11:30 p.m.: The CFTC leaves MFGI’s Chicago offices.
11:40 p.m.: Procajlo emails Bagan and Kokal, stating that he is now at MFGI’s offices and the shortfall, of approximately $950 million in segregation, is still a “huge issue.” No one has found the error, but the belief is still that there is an error. Serwinski is looking into coming up with additional funds to transfer into segregation as a contingency in the event that they cannot locate the accounting error.
Procajlo also states that he understands IB is now aware of the potential shortfall.
October 31, 2011

12 a.m.: Ferber emails Taylor, stating only: “we may have it.”
Approx. 12:30 a.m.: At this time: (1) The IB deal is ready to go — apparently including regulatory signoffs; (2) there is still a $900M apparent segregation shortfall and MFGI says it is an accounting error; (3) the transfer cannot happen until it is clear there is no segregation shortfall; (4) MFGI is starting to identify sources of funds available to top up segregation — and the latest report from MFGI is that they may have sufficient funds; (5) IB and MFGI have spoken to CME and both seem aligned on the importance of the transfer occurring promptly, and state they are open to the suggestion of having MFGI top up segregation and TB making corresponding adjustments to the deal economics.
Approx. 1 a.m. —2 a.m.: CME learns the deficiency is real: Serwinski and O’Brien call Procajlo into Serwinski’s office and tell him there is an actual shortfall; about $700M was moved to the broker-dealer side of the business to meet liquidity issues in a series of transactions on Thursday, Friday, and possibly Wednesday. Additionally, Procajlo is told there was a loan of $175M of segregated funds to MF UK.
CME stops its efforts to look for the accounting error. CME understands that MFGI is attempting to find available funds and get Fedwire to open early so they can start transferring money into the segregated account.
2 a.m.: Taylor emails the FSA and CFTC to let them know that IB has gone home to get some sleep, but may still be interested in the transaction.
2 a.m.: Procajlo communicates via email with Thelma Diaz from the CFTC Washington D.C. office, who is on a regulatory call at the time, and discusses whether Fedwire can open early so MFGI can start transferring funds into segregation.
3 a.m.: Ramirez and Guch leave MFGI for the night. Procajlo stays until 8 p.m. the following day.
During the night, Procaljo also participated in a phone call with senior MFG employees wherein one employee indicated that Corzine knew about loans that had been made from the customer segregated accounts. CME Group has provided information about this call and related conversations, and the names of the individuals who participated, to the Department of Justice and the CFTC who are investigating these matters.

4 a.m.: Taylor and Gill participate in a call with MF Global and the regulators.
4:37 a.m.: Procajlo emails others at CME with a list of potential assets MFGI has identified that it could move into segregation.
The deal with IB to buy MFGI collapses.
6:45 a.m.: Taylor emails CME senior management to inform them that the deal has collapsed, the shortfall is real, and there will likely be a bankruptcy.
7:30 a.m.: Procajlo, Ramirez and Guch are on site at MFGI while MFGI attempts to make transfers of funds back into segregation. The CFTC is also present.
8:30 a.m.: Taylor and Radhalcrishnan communicate via email regarding MFGI bulk transfers.
9 a.m.: MFGH files for bankruptcy.
10 a.m.: Taylor and Radhakrishnan communicate via email regarding the amount of shortfall.
10:30 a.m.: CME’s Emergency Financial Committee orders that all trading of MFGI and its customers be for liquidation only. Taylor’s assistant emails a letter from Taylor to Dennis Klejna (“Klejna”), Assistant General Counsel of MFGI, stating the Committee’s order. The letter further states that CME will no longer permit floor trading to be guaranteed by MF Global, and that CME will process account transfers at the Friday settlement price but that customers will need to re-margin transferred positions.
Moody’s further downgrades MFGI.

S&P and Fitch downgrade MFGH to default following MFGH’s filing for bankruptcy protection.

11 a.m.: A SEPA proceeding is filed for the liquidation of MFGI and a SIPC Trustee is appointed.
12:15 p.m.: CME’s Emergency Financial Committee orders that MFGI liquidate its house proprietary positions. Taylor’s assistant subsequently emails a letter to this effect to Klejna and Serwinski. The Committee also authorizes CME to liquidate securities held as house and customer collateral under the control of the Clearing House to cash.
Throughout the day, Ramirez and CME staff— Guch, Jared Jarvis (“Jarvis”), Procajlo, and Mudassir Arby (“Arby”) — attempt to tie out the 10/28 seg. statement.

7 p.m.: CME’s Emergency Financial Committee approves a rule change releasing members qualified by MFGI, such that those members could become qualified and guaranteed by another clearing member in order to resume trading.
7:46 p.m.: CME receives the amended MFGI seg. statement for 10/27 showing a segregation deficiency of $213,062,967.
7:55 p.m.: CME’s Emergency Financial Committee (i) authorizes the Clearing House to conduct an auction of MFGI’s house positions in order to transfer the positions to another clearing member, and (ii) authorizes the Clearing House to accept certain deliveries from MFGI customers through Friday November 4 in order to minimize disruption to the markets.
8 p.m.: CME notifies MFGI that it is suspended as a clearing member on all CME Group exchanges. Taylor’s assistant subsequently emails a letter from Taylor to Klejna and Serwinski confirming the suspension.
8:06 p.m.: CME receives MFGI’s seg. statement for 10/28 showing a segregation deficiency of $891,465,650.
Source-http://www.zerohedge.com/news/must-read-presenting-mf-global-black-box-minute-minute-breakdown-doomed-brokers-last-week-alive