I'd like to point you at an article here that explains exactly what is so scandalous about the collapse of MF Global and the (seemingly standard) practice of re-hypothecation.
In effect, it means that any assets you own but hold via a bank, may not end up being yours if something happens to that bank.
If you don't want the big boys to get first dibs on your property, you'd better be very sure that the bank you've chosen is solvent, prudently run, and does not indulge in re-hypothecation of customer assets...
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