MF Global’s Corzine Ordered Funds Moved to JPMorgan, Memo Says

[kpete]

Source: Bloomberg

Jon S. Corzine, MF Global Holding Ltd. (MFGLQ)’s chief executive officer, gave “direct instructions” to transfer $200 million from a customer fund account to meet an overdraft in one of the brokerage’s JPMorgan Chase & Co. (JPM) accounts in London, according to an e-mail sent by a firm executive.

Edith O’Brien, a treasurer for the firm, said in an e-mail sent the afternoon of Oct. 28, three days before the company collapsed, that the transfer of the funds was “Per JC’s direct instructions,” according to a copy of a memo drafted by congressional investigators and obtained by Bloomberg News.

O’Brien’s internal e-mail came as the New York-based broker found intraday credit lines limited by JPMorgan, the firm’s clearing bank as well as one of its custodian banks for segregated customer funds, according to the memo, which was prepared for a March 28 House Financial Services subcommittee hearing on the firm’s collapse. O’Brien is scheduled to testify after being subpoenaed this week.

“Over the course of that week, MF Global (MFGLQ)’s financial position deteriorated, but the firm represented to its regulators and self-regulatory organizations that its customers’ segregated funds were safe,” said the memo, written by Financial Services Committee staff and sent to lawmakers.

Read more: http://www.bloomberg.com/news/2012-03-23/mf-global-s-corzine-ordered-funds-moved-to-jpmorgan-memo-says.html

[sendero]

1. Brazen theft..

.. of epic proportions and what do you hear, crickets.

[rocktivity]

2. If Corzine did that

he is a MF indeed.


rocktivity

[Octafish]

3. The corruption is universal.

It is most sickening. And systemic.

[grasswire]

4. wow

I wonder how often that kind of crap goes on.

[MannyGoldstein]

5. He's a member of a protected class

So this will be a "look to the future, not at the past" situation.

[CAPHAVOC]

8. Too politically connected

For anything to happen to him. He has the goods on too many politicians. He will skate. He is in the .01%.

[fascisthunter]

6. People Like This are Lucky I have no control over our System

I would send his ass to prison for life... end of story.

[naaman fletcher]

7. where are the handcuffs? nt

[hughee99]

9. Corzine is former Governor, Senator, and head of Goldman Sachs, you don't get more connected

than him. Still, if they really have him dead-to-rights on this, I don't see how they avoid even a slap on the wrist. I expect to see 12-18 months at "Club Fed" (actually serving less than that) and a fine that seems like it's a lot of money, but for him, it's really not. (maybe $50 million)

[rayofreason]

10. He should be in jail. n/t

[Broderick]

11. Is it heresay?

Not at all defending Corzine cause he is a .01 percenter that was at the helm when all this was going on and went down. I want to see an email directly or a paper directly implicating him. Heresay won't convict. He is too well connected. And he will probably chuckle when or if underlings well below him are cut on the sword.

[sendero]

12. The memo either exists.

... or it doesn't. "Hearsay" doesn't enter in to it. And I'm betting the memo does exist, and I'm also betting that plenty of forensic evidence exists, because no underling would pull a stunt like this without approval from the top.