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Did JP Morgan Withold Payment to MF Global?

|Includes:GS, JPM, MF Global Holdings Ltd. (MFGLQ)

Via Reuters:

MF Global unloaded hundreds of millions of dollars' worth of securities to Goldman Sachs in the days leading up to its collapse, according to two former MF Global employees with direct knowledge of the transactions. But it did not immediately receive payment from its clearing firm and lender, JPMorgan Chase & Co, one of the sources said.

The sale of securities to Goldman occurred on October 27, just days before MF Global Holdings Ltd filed for bankruptcy on October 31, the ex-employees said. One of the employees said the transaction was cleared with JPMorgan Chase.

At the same time MF Global, which was run by former Goldman Sachs head Jon Corzine, was selling securities to Goldman to raise badly needed cash, the futures firm was also drawing down a $1.2 billion revolving line of credit it had with JPMorgan, according to one of the former MF Global employees.

JPMorgan spokeswoman Mary Sedarat said the bank did not withold money because of the line of credit. She declined further comment on details of the transactions.

Can there ever be a problem without Goldie being mentioned?  If they stepped in and picked the pockets of MFG at a fire sale, who cares - that is the nature of the beast. 

IF JPM didn't pass along the money, that is another story.  I just find it amusing that the story leads with Goldman being mentioned, not JPM possibly witholding payment.  Interesting that it is said the bank did not withold money because of the line of credit - this does not say money was not witheld.  Interesting.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Stocks: MFGLQ, JPM, GS