From Jesse's Cafe Americain:

Much of the financial press picked up this story from the Wall Street Journal, "Money From MF Global Feared Gone." Much of the mainstream media in the U.S. and the U.K. these days is just a conduit for sound bites from the monied interests.

"Nearly three months after MF Global Holdings Ltd. collapsed, officials hunting for an estimated $1.2 billion in missing customer money increasingly believe that much of it might never be recovered, according to people familiar with the investigation."

"As the sprawling probe that includes regulators, criminal and congressional investigators, and court-appointed trustees grinds on, the findings so far suggest that a "significant amount" of the money could have "vaporized" as a result of chaotic trading at MF Global during the week before the company's Oct. 31 bankruptcy filing, said a person close to the investigation."

And as we have heard, quite a bit of that money was also diverted in the last few days into the pockets of MF Global's bank, JP Morgan, which still reportedly holds much of it.

Now whether they are legally entitled to keep that money is another matter. But this entire charade has been cloaked with a public relations campaign using terms like "missing," "vaporized," and "mystery" to describe the customer assets as if no one really knows where the funds had gone, which the CFTC has explicity stated months ago is not the case. And that the handling of the bankruptcy and the method of ordering customers with creditors is in violation of the rule 190 and precedents which established it.

What the press apparently has not yet heard or is not reporting is that...

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More on fraud:

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Move over Solyndra... Taxpayers are on the hook for another $118 million Obama-backed bankruptcy