This story is going to become bigger and bigger as more false denials come out. This is also fascinating as to how it relates to Canadian banks and how up to this point they have escaped much of the mess at American and European banks. I have to tip my hat both to Reuters and to ZeroHedge blog for getting this out. If you have funds in the stock market (401k, Roth IRA, Traditional IRA) you need to be aware of this and take due caution as it relates to your individual situation. Rehypothecation is basically (my laymen's definition) committing the same assets (which may be garbage "assets" to begin with) as collateral on different loans, or more than once.
http://www.zerohedge.com/news/denials-begin-interactive-brokers-first-claim-it-has-not-engaged-commingling-rehypothecation
Also, the original Reuters article again:
http://newsandinsight.thomsonreuters.com/Securities/Insight/2011/12_-_December/MF_Global_and_the_great_Wall_St_re-hypothecation_scandal/
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