MF’s Corzine Ordered $200 Million of Customer Funds Moved to JP Morgan, Memo Says

MF’s Corzine Ordered Funds Moved to JP Morgan, Memo Says

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 a brokerage account with JPMorgan Chase & Co. (JPM), according to a memo written by congressional investigators.

Edith O’Brien, a treasurer for the firm, said in an e-mail quoted in the memo that the transfer was “Per JC’s direct instructions,” according to a copy of the memo obtained by Bloomberg News. The e-mail, dated Oct. 28, was sent three days before the company collapsed, the memo says. The memo does not indicate whether that phrase was the full text of the e-mail or an excerpt.

O’Brien’s internal e-mail was sent 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 at the hearing 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.

Steven Goldberg, a spokesman for Corzine, said in a statement that Corzine “never gave any instruction to misuse customer funds and never intended anyone at MF Global to misuse customer funds.”

Rest here…

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Comments
7 Responses to “MF’s Corzine Ordered $200 Million of Customer Funds Moved to JP Morgan, Memo Says”
  1. Mary says:

    Peel an onion!!! How deep does this rabbit hole go?

  2. lvent says:

    I agree with Bloomberg news assessment on all of this fraud…It is an attack on Capitalism … IMHO there is well documented and undeniable proof that this is an attack on Capitalism and it was meant to destroy our National Sovereignty…This attack has been waged on America and the American people and Capitalism by a small group of greedy individuals…This attack has been well planned and instituted by the so called elite who have infiltrated everything including Washington…the so called elite have slowly and strategically monopolized American banking and business with Corporatism in order to rob us and this attack has been ongoing for decades. It really gained steam and momentum under the Reagan administration when George H.W. Bush was “vice-president.”

  3. see says:

    Frankly, I don’t see how anyone can believe a thing these people say. They testify and say one thing, then a few months later those emails or letters show up saying the opposite. One would think by now that they would get a clue and plan their deceitful lies better. Once the devil is done with you, he will chew you up and spit you out without any hesitation. Now lets see what happens to this lying b$st$rd.

  4. judge allslop says:

    I believe this shows how desperate the crime syndicate was to avoid a “default” within COMEX that would have exposed JP Morgan Chase to a terminal event, exposing huge naked short posistions. It appears Mr Corzine has perjured himself and may be the soldier that has been elected to fall on his sword.

  5. Katheryn says:

    It was plain outright theft of the customers’ accounts. No different then pointing a gun in someones face and robbing them with the exception that the latter goes to jail if caught. An individual that hid all their assets four days prior to filing bankruptcy would be raked over the coals by the bankruptcy judge…not these guys…they laugh all the way over to their off shore accounts only to return with their hands out for more. It will never end because there are no laws to be broken for large corporations as there are laws for, we, the common people. It’s a cryin shame.

  6. gregory says:

    Everyone knows dirty ol Jamie Dimon had a hand in these dirty dealings

  7. Jason Werner says:

    I like how the SEC issued a press release stating that they had this fiasco under control.

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