What does “re-hypothecation” mean? By Prieur du Plessis, on January 8th, 2012 posted in: Re-hypothecation  The term “re-hypothecation” came up a lot during the MF Global meltdown. It’s quite a common term in the securities market – but what does it mean? Re-hypothecation from Marketplace on Vimeo. Source: Paddy Hirsch, Marketplace, January 7, 2012 (hat tip: The Big Picture). Did you enjoy this post? If so, click here to subscribe to updates to Investment Postcards from Cape Town by e-mail. | Don Coxe’s Weekly WebcastPodcast – Dow Jones One minute - every hour - weekdays
(requires Windows Media Player) | Daily Charting Update(14:00 EST)
Try MarketClub for 30 Days for just $8.95 – Click Here!
Trade Forex where technology meets the world of finance; where technology meets foreign currency.
Our Forex platform was developed by traders who understand the needs of a successful trader. |
![[Most Recent Charts from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_4.gif)
Email
Byron Wien Announces “The Ten Surprises” for 2013
Prieur’s Readings (January 3, 2013)
Bob Farrell’s 10 rules for investing
Running 2012 NYC Marathon – a means to a better life for impoverished children
Prieur’s Readings (August 29, 2012): No “death of equities”
This is not what happened at MF Global. The securities were not pledged, but were in segregated accounts with no money owing to anyone. MF just pledged something that was not theirs to pledge. The problem is that a recipient of stolen goods does not get good title, yet the rightful owners are being denied their property. Re-hypoing in that case is really just stealing.
So far it means that they can steal your money and you have no recourse.