More financial institutions are falling faster and faster. The financial hurricane that we are passing through matches the one that is hammering the Cayman Island pirate coves. The hedge funds in trouble in today's news can't go to Her Majesty to be saved. Like Elizabeth I, this queen disowns anyone caught on the High Finance Seas by the Frigate, USS SEC. And I can now say, 'Hang 'em high! Avast, ye maties!' Talk like a pirate day is here as more than one hedge fund operation sinks to Davey Jone's courtroom.
Sentinel Management Group Inc., the cash-management firm that froze client withdrawals last week, was sued by the U.S. Securities and Exchange Commission for allegedly lying to investors and misappropriating their assets.Sentinel fraudulently moved at least $460 million in securities from clients' accounts into its own and misused customers' holdings as collateral to obtain a $321 million line of credit ``for its own benefit,'' the SEC said in a lawsuit filed at U.S. District Court in Chicago today.
Blimey. Thar she blows! Seems that as the pirates running the Sentinel, a ship that hoists sail from the Queen's Cayman Islands pirate coves has been hailed by the USS SEC. The Montey Python crew did a hilarious movie about the Meaning Of Life and in one scene, a pirate ship with clerks and accountants attack England. How appropriate! Another scene comes to mind: 'Just one more thin mint, sir.' That scene actually made me physically ill.
And then there is Yellowbeard, another favorite movie by them! Heck, everything ever done by them is appropriate all the time for everything. And we are deep in Pythonian territory here. Today, the Cayman Islands won't be rubbed off the map by Hurricane Dean but the financial pirate coves are under full assault from another quarter: furious investors have decided to invade and attack these joints. Ships filled with lawyers are now swabbing down the barrels of their cannons and already some have fired some shots.
Sentinel customers including Penson Worldwide Inc., a Dallas-based securities-clearing firm, accused the firm on Aug. 17 of selling off their assets at below-market rates to hedge fund manager Citadel Investment Group LLC.
They tried to take their chest of treasures and run off with it. According to the captain of the USS SEC, they shifted the money out of the safe where it supposedly was being counted so it could be returned to the investors who thought the Sentinel was doing business and wasn't a pirate ship despite the parrots, the eye patches and the skull and bones flag!
Here is the first cannon balls flying overhead, avast, mateys, duck or ye be dead!
Recently, the Queen of England and some of her more despicable pirate crews sent lawyers to attack me! ME! HAHAHA. They thought I would run away from their Killer Rabbit. Only I didn't. I pointed out that the Queen of England owns all these Islands all of which swear fealty not to the country that calls itself 'The United Kingdom' or god help us, 'England'. No, they swear to the Queen herself and they couldn't work as pirate coves if She didn't give them permission and collected rent from the warves where their ships park themselves in between raids!
I accuse her of harboring pirates in her harbors. If you look at the addresses and fine print of all these goofy organizations you will see 'Jersey' (not the state that is always compared to toxic spills), Guernsey, Bermuda or the Cayman Islands. This isn't accidental! She, unlike the Parliament of England, doesn't allow anyone to tax them but herself and She wants only a small slice of this pirate pie. She doesn't have much of an overhead, the people of England get to pay to protect her, she keeps her private islands free of protection taxes. And Americans seeking to not pay for America patrolling the Seven Seas move there so they too can evade taxes and get a free ride. To be protected while they act as pirates. What a funny thing. Arrrgh.
Well, save your lawyer's fees, guys, and don't sue me. You need them for protecting you when the SEC sails forth to capture you guys and put you all in PRISON. Hear me? PRISON. HAHAHA. Right!
I always visit dying criminal organizations but here is Sentinel's web site:
Under DEstruction, I would suggest. Sometimes these guys are slow to end their web pages but not these pirates! They moved fast:
But this won't fool the SEC! Nope! They can retrieve even hidden stuff! And if Sentinel hides too much, the ship filled with SEC lawyers will grapple aboard and haul everyone to jail. This is going to be fun to watch. Pirates of the Caribbean: 'On The Dock'. Let's go back in time and see how this unfolded.
By Alistair Barr, MarketWatch
Last Update: 4:15 PM ET Aug 14, 2007SAN FRANCISCO (MarketWatch) -- Sentinel Management Group Inc., a firm that manages cash for other investors, has moved to halt client redemptions to avoid selling securities at deep discounts.
Sentinel told clients in a letter that it has asked the Commodity Futures Trading Commission for permission to halt withdrawals.
Like the guys who tried to shut down this news service, they all said they were going to sit down and account for everything before talking to the investors. Then suddenly, they simply shifted all the money to another pirate ship and tried to sail away, leaving NOTHING. And we wonder why there was a crisis after August 15th concerning getting more investors to put more money up for loans! HAHAHA. And so the Central Banks tried to save these pirates. Today, many of them are still sailing about, there is hmmm...about another 8,000 of these ships still on the High Seas and our own governments are still trying to protect them all!
NYMEX Holdings, Inc. Statement Regarding Sentinel Management Group, Inc. and NYMEX Financial Safeguards
Wednesday August 15, 8:00 am ETNEW YORK, Aug. 15 /PRNewswire-FirstCall/ -- NYMEX Holdings, Inc. (NYSE: NMX - News) today confirmed that with regard to the circumstances surrounding Sentinel Management Group, Inc., Sentinel is not a clearing member and does not have any funds on deposit with NYMEX, nor does NYMEX have funds on deposit with Sentinel. All NYMEX clearing members continue to meet their obligations to NYMEX and remain in good standing.
Here is another group terrified they would be painted with the same brush probably because they are awfully similar. The fear surrounding these guys is great as it ought to be and should have been long before. The thing that really riles me is how investors all ran off to pirate coves to get rich! They all thought they were the same, little did they understand that ONLY the top staff were real pirates, the rest were chumps. And the irresponsiblity of the British for running these tax havens is obvious.
How DARE they do this offshore? This is anti-social and worse, treasonous. Allowing organizations with offices in London and New York City to run these things offshore while using the English and American people as shields and home bases, this is criminal as far as I am concerned. These islands should either be put under the jurisdiction of the English Parliament or the US should invade them and take over their banks!
After all, these are invasion we can win. Reagan did this.
Capital One Financial Corp. shut its GreenPoint Mortgage unit today, saying that weak demand from investors who buy residential home loans is making it too hard to turn a profit. About 1,900 jobs will be lost.The company, based in McLean, Virginia, said in a statement that it expects a charge of about $860 million, or $2.15 per share, mostly in this year.
There goes yet another one! These ships are sinking pretty fast now and it hasn't even come to the eye of this hurricane that is sinking so many ships in this brave fleet. This is why the pirate ships manned by hedge fund hell hounds are so busy sailing off as fast as they can. To save these mortgage ships, the Federal Reserve will have to drop interest rates to 1% again and then the biggest ship of all, the USS Titanic, will sink. This is what happens when our entire nation tries to get rich without trading things of value with China.
Solent Capital Partners LLP, the U.K. manager of $8.8 billion in hedge funds, may be forced to sell assets in a unit that buys mortgage-backed securities after lenders refused to provide short-term funding.
*snip*
Mainsail II is drawing on emergency bank loans after failing to sell asset-backed commercial paper, or short-term IOUs, the fund said today in a statement. Mainsail II, which was set up by London-based Solent last year, issues the debt to invest in longer-dated assets such as mortgage-backed bonds.
Bigger and bigger, they are falling. Boom. This one is amusing. They deliberately left out the 'y' in their name: SoYlent Green:
Now say the name of the bank in this little blurb outloud: Rab-o-bank. Rob a bank. Heh. Gads, they are so funny. Haha. I can't wait for 'Pirate LLC' to get snagged by the SEC! They are still afloat, I think. Better check them out again. Here is 'Mainsail II', the parent organization that hosts and protects this little hedge fund, and do note the pirate connotations of their name, main sail.
Mainsail II Ltd - Statement re Wind Down EventRNS Number:4450C
Mainsail II Ltd
20 August 2007FOR IMMEDIATE RELEASE
17 August 2007
MAINSAIL II LTD. (THE 'COMPANY')The Company is an exempted company with limited liability organised under the laws of the Cayman Islands and established for the purpose of carrying out the business of an investment company in relation to the Company's programme for the issuance of capital notes (the Capital Notes') and mezzanine notes (the 'Mezzanine Notes' (together, with the Capital Notes, the Programme Notes') as more particularly set out in the information memorandum (the 'Information Memorandum') dated 12 July 2007 in relation to the Programme Notes.
The net proceeds of the issuance of the Programme Notes were used by the Issuer to acquire a portfolio of investments including cmbs, rmbs and cdo asset backed securities).
Heave ho, me mateys! Another pirate ship! I wonder if their building is still standing? Usually, it is some small office in the Cayman Islands staffed by someone local who has run for the hills only there aren't any so they may drown. But the real offices are in the USA and England! But they do NOT swear fealty to the democratic organizations running either nation. They be pirates. And they offered notes only a month ago and are in trouble already? Gads. Glub, glub, blub.
And they are attached to Solyent Green which is in Jersey, another offshore Queen of England private property.
Solent Capital (Jersey) Limited as attorney for the Company/Solent Capital Partners LLP as attorney for Solent Capital (Jersey) Limited.
In particular, the Company has not been able to raise commercial paper pursuant to its Euro CP Note Programme and its USCP Note Programme which has resulted in the Company drawing under certain back-stop liquidity arrangements (at a higher costs of funds which could have a material negative impact on the Company's earnings) and liquidity funding may cease to be available under such back-stop liquidity arrangements. As a result of such adverse liquidity and market conditions, a market value coverage test wind down event has occurred. Following the confirmation of a wind down event and for so long as such wind down event is continuing, the Issuer acting on the advice of the collateral manager) must comply with specified wind down management procedures resulting in the forced sale of investments and/or closing out of hedging instruments at a loss which may materially impact principal and interest repayments on the Programme Notes.
Further announcements may be made by the Company in respect of the above matters.Monday August 20th, 2007 / 14h09
The wind is not just 'down', it is howling at 150 mph and the rain is falling hard. Back-stop liquidity is now the problem in high seas and they are suffering 'negative impact' as their ship slams into the rocks! Every hedge fund has novel ways for describing their insolvency. They don't say, 'Sorry, suckers, you lose, we are so OUT of here. Soylent Green is PEOPLE!'
In the film's tomorrow, Soylent Green is people and the oceans are dying. In our today, indeed, things aren't much better. Bravo Eliane! Well said!
Posted by: Frank | August 20, 2007 at 08:21 PM
Aren't the names of these guys a hoot? They make it so much easier for me to find some humor in all this.
Posted by: Elaine Meinel Supkis | August 20, 2007 at 10:31 PM
Would that Pirate Jenny were waiting offshore to greet the Queen's hell hounds!
Posted by: Frank | August 21, 2007 at 12:16 AM
From Google Cache 2 Sentinel pages:
http://209.85.135.104/search?q=cache:h9V_NBia2B4J:www.sentgroup.com/cont.html+&hl=de&ct=clnk&cd=1&gl=de
http://209.85.135.104/search?q=cache:xvDt-hLZXzEJ:www.sentgroup.com/disclaimer.html+&hl=de&ct=clnk&cd=2&gl=de
"Its senior management team alone represents more than 200 years of combined experience in the financial services industry." Great.
Posted by: Lisa | August 21, 2007 at 07:56 AM
I am kicking myself. Since Elaine had previously featured Sentinel, I googled Sentinel just to see what the fuss was (Friday Australian time). I should have saved the web pages that Sentinel had left to file. (The main one had gone).
I am sure that Sentinel had made some claim that it had not lost any money for its clients since it started in 1979.
Posted by: Bokonon | August 21, 2007 at 07:58 AM
One small detail: Rabo in Rabobank is derived from the first to letters of the original 19th century founder, Raiffeisen, and al later partner after an merger, de Boeren leenbank (meaning farmer's bank in dutch). I don't think there was any pun intended here.
Brgrds,
Dutch renter
Posted by: Dutch renter | August 21, 2007 at 08:58 AM
"Why should you choose Sentinel?"
http://209.85.129.104/search?q=cache:im0YBNpTOFQJ:www.sentgroup.com/why.html+Sentinel+Management+Group&hl=ca&ct=clnk&cd=2&gl=es
Posted by: Lisa | August 21, 2007 at 09:45 AM
Thanks for the history, Dutch Renter! Of course, I figured the name had a different genesis. But it is still very amusing that it sounds like Rob a bank. I call this 'harmonic happenstance' and it fits, too.
And yes, Sentinel is trying to cover its tracks. After all, the USS SEC is now in hot pursuit!
Posted by: Elaine Meinel Supkis | August 21, 2007 at 10:16 AM
Elaine, apart from your informative pages readers can also learn about mortgage finance company failures at ML Implodometer and hedge fund diasters at HF Implodometer. It's about time someone tracked the human fallout with a pulsating counter as the blame game heats up. Can we subscribe to email alerts too?
While "Kenny Boy" gets founder status and the lifetime achievement award in my opinion, Jeff Wells over at Rigorous Intuition may have identified the next inductee:
"Tony Blair's friend, millionaire banker Nicholas Lethbridge has had a great fall. Formerly of the Saudi International Bank, the World Bank and the investment firm Babcock and Brown, Lethbridge died last week from injuries sustained at his 11th century estate in the south of France. "It is believed he fell after getting up early to make himself a cup of coffee...tragically crashing through the balustrade and down a stairwell." Well, these things happen. And with some frequency within the circles of a certain kind of money."
Posted by: Cato | August 21, 2007 at 03:52 PM
Wow. Some strong cup of coffee! I can't put the meters on my blog easily, alas. But thanks for telling me about them.
Posted by: Elaine Meinel Supkis | August 21, 2007 at 07:44 PM
The diversification and the institutionalization of a Hedge Fund like Citadel are becoming more prevalent. And it's fair to say that going public is the direction that Ken [Griffin] wants to go.
Posted by: Hedge Funds | November 09, 2007 at 02:52 AM
Going public is all about fleecing more sheep. Just like we are seeing the heads of Citigroup and Morgan Stanley and Merrill Lynch dash off with many millions while the public who invested in them are taking a bath, indeed.
A fool and his money are soon parted but partners in crime all run away, rich, if the cops don't catch them before they flee to foriegn nations [one of which starts with an 'I'].
Posted by: Elaine Supkis | November 09, 2007 at 10:43 AM
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