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Jon Corzine (MFGLQ.PK) ordered $200M in customer funds moved to JPMorgan to cover an overdraft,...

Jon Corzine (MFGLQ.PK) ordered $200M in customer funds moved to JPMorgan to cover an overdraft, an email from MF Global's treasurer suggests - a seeming contradiction of Corzine's congressional testimony "I did not instruct anyone to lend customer funds to anyone."
Comments (37)
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    What took so dam long.. On CSI or Law an Order the forensic accountants would have found the money before the first commercial !

     

    Subcommittee has got the email and rep controlled. Blood ! Who is lying Edith O'brian or Corsine
    23 Mar 2012, 04:30 PM Reply Like
  • Poor Texan
    , contributor
    Comments (3529) | Send Message
     
    Can't be Corzine. He's a democrat and, as Bill Clinton said, the truth is whatever he says it is.:-(
    23 Mar 2012, 04:34 PM Reply Like
  • jmjjmj1
    , contributor
    Comments (149) | Send Message
     
    yeah because both parties aren't crooked??!
    23 Mar 2012, 04:42 PM Reply Like
  • dixie
    , contributor
    Comments (276) | Send Message
     
    You mean "Honest John" is really a crook?
    23 Mar 2012, 04:44 PM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    dixie............. dixie......dixie.........

     

    He was...... GS.... CEO... Say more ????

     

    OK , Gov of NJ too...And, ever watch where gangsters live ?
    23 Mar 2012, 04:48 PM Reply Like
  • Stoploss
    , contributor
    Comments (1727) | Send Message
     
    Keyword is overdraft.
    23 Mar 2012, 04:57 PM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    No key word was telling Congress he was Sgt Schultz an new nutting ! Thax a crime in itself ! He should have taken da 5th !
    23 Mar 2012, 04:59 PM Reply Like
  • Stoploss
    , contributor
    Comments (1727) | Send Message
     
    Apologies, Loop Hole is overdraft. He sent over 200m to cover an 'overdraft'. If JPM lent out the money without his knowledge or consent, which is what he basically says in the quote, it is two different things.

     

    Ping Pong.
    23 Mar 2012, 05:18 PM Reply Like
  • CautiousInvestor
    , contributor
    Comments (3016) | Send Message
     
    I doubt seriously the overdraft was on customer accounts, leaving only MF global accounts to be overdrawn. Taking this to be the case, his order to move customer funds could only mean the obvious: Corzine defrauded customers to satisfy MF liquidity/solvency deficits.
    23 Mar 2012, 06:49 PM Reply Like
  • CautiousInvestor
    , contributor
    Comments (3016) | Send Message
     
    From the Telegraph:

     

    Under federal regulations, segregated customer funds aren’t meant to be touched. JPMorgan’s chief risk officer Barry Zubrow called Corzine that day to seek assurances that the funds belonged to MF Global not clients and followed it up with a letter for O’Brien to sign. The letter was never returned.

     

    CI here. It's reasonably clear to me customer funds were embezzled to fraudulently meet MF Global funding needs.
    24 Mar 2012, 09:38 AM Reply Like
  • DizzySailor
    , contributor
    Comments (15) | Send Message
     
    I seem to remember the words "Or I'll ki(ll) you " included in the story somewhere.
    23 Mar 2012, 05:24 PM Reply Like
  • deercreekvols
    , contributor
    Comments (5139) | Send Message
     
    Meanwhile, Jon Corzine has bought a chateau in France and is not fearing prosecution.

     

    How interesting that this news "breaks" late on a Friday afternoon.

     

    The wheels of justice fell off the wagon on this one! There was plenty of evidence of wrongdoing long before this e-mail.

     

    Why was he brought in before the Agriculture Committee when clearly he had knowledge of where the $1.2B of investor money went?

     

    Where is Jon Corzine?
    23 Mar 2012, 06:08 PM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    Can you teach me to say no extradition in French ?
    23 Mar 2012, 06:33 PM Reply Like
  • saratogahawk
    , contributor
    Comments (1567) | Send Message
     
    So he said under oath at congressional hearings that he didn't authorize the transfer and didn't know who did. So lets see. Friend of Obama's. Destroyed MF Global. Lied under oath. Sounds like he will be a cabinet member or Ambassador if Obama gets reelected.
    23 Mar 2012, 06:29 PM Reply Like
  • Uncle Pie
    , contributor
    Comments (2666) | Send Message
     
    smoking gun. at last.
    23 Mar 2012, 06:32 PM Reply Like
  • w2xq
    , contributor
    Comments (2) | Send Message
     
    Bush did it. :-)
    23 Mar 2012, 06:55 PM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    Keep you eyes on the calendar as George P. Bush is getting older and will be the first true Latino President.. viva la republic
    23 Mar 2012, 07:01 PM Reply Like
  • saratogahawk
    , contributor
    Comments (1567) | Send Message
     
    Of course, why didn't I think of that. Bush did it. Just like he caused the Great Depression and the Civil War.
    23 Mar 2012, 06:58 PM Reply Like
  • Kraken
    , contributor
    Comments (539) | Send Message
     
    Due to Corzine's political and professional background, he will walk away from this unscathed. He has plenty of friends on the hill. These connections will give him a slap on the wrist. If any one us every committed a crime like this, we would get a minimum prison sentence of 5 years. Great country we live in.
    23 Mar 2012, 07:33 PM Reply Like
  • TippingPoint
    , contributor
    Comments (147) | Send Message
     
    Corzine is probably going to jail. I think we will see a perp walk soon. What a fool. It just shows you that just because a guy is from Goldman doesn't mean he is brilliant. Corzine was risk taking bull and when not surrounded by Goldmans risk management apparatus, he was just a lit fuse waiting to blow up someone's company (sort of like he almost did to NJ).
    23 Mar 2012, 07:41 PM Reply Like
  • Poor Texan
    , contributor
    Comments (3529) | Send Message
     
    "Corzine is probably going to jail."
    I would hope you're right but as you can see, the consensus on this board is that he is too connected to fail or jail.
    25 Mar 2012, 11:06 PM Reply Like
  • Joe Dirnfeld
    , contributor
    Comments (1128) | Send Message
     
    Corzine is above the law. He is a noble man that deserves to be so by divine right. He is not a 1% , he is a 99ner. He even smells maahvelous .
    23 Mar 2012, 07:49 PM Reply Like
  • SA reader
    , contributor
    Comments (176) | Send Message
     
    The only thing to do now is indict this crook.
    24 Mar 2012, 01:28 AM Reply Like
  • schatzl
    , contributor
    Comments (391) | Send Message
     
    Anybody surprised? How many more Corzines are out there in Wall Street? Too many. The industry attracts the wrong people.
    24 Mar 2012, 07:51 AM Reply Like
  • GalXZ
    , contributor
    Comments (56) | Send Message
     
    As Ricky Ricardo would say.Once again, someone has some spainin' to do!
    24 Mar 2012, 10:36 AM Reply Like
  • New Low Observer
    , contributor
    Comments (2030) | Send Message
     
    The following quote from Edith O'Brien (of MF Global) at the CFTC's staff roundtable on INDIVIDUAL CUSTOMER COLLATERAL PROTECTION on October 22, 2010.

     

    "...as we continue the conversation this afternoon, I want everyone to consider the fact that there's a greater framework at hand here, one that has actually worked extremely well.

     

    "One of the comments that I've heard over the last couple of weeks is how do we prevent a Lehman from happening here? We did. Lehman happened in the U.K.; it did not happen in America."

     

    Based on O'Brien's logic, if it didn't happen on our shores then it's their (British Financial Authorities) fault the customer protections didn't work.

     

    Well now, what a revolting development this is.
    24 Mar 2012, 03:14 PM Reply Like
  • GalXZ
    , contributor
    Comments (56) | Send Message
     
    But there are checks and balances.Perhaps the courts will rectify the problems. Maybe the court system will help to hold those accountable for damages in this situation.
    24 Mar 2012, 03:27 PM Reply Like
  • New Low Observer
    , contributor
    Comments (2030) | Send Message
     
    Greetings GalXZ,

     

    Yes, there are checks and balances in the system. Unfortunately, when the courts levy fines that are 1/1,000th to 5/10,000th of the crime committed, it gives justifications for future occurences as we've noted here on SA in the past.

     

    "PCAOB: Our Protectors, Encouraging Malfeasance" found here: http://seekingalpha.co...

     

    Just to restate, you are absolutely right, there are checks and balances in the framework of the current system. However, as the checks are metted out it becomes clear that there are severe imbalances which actually encourage the very behaviour that is supposed to be discouraged.

     

    Sar-Box and Frank-Dodd came before MF Global. Yet, violations of both are reflected in the failure of MF Global. This explains some of the reasons why there is outrage, by some, that Corzine and O'Brien haven't been charged with a crime.

     

    Best regards.
    24 Mar 2012, 04:01 PM Reply Like
  • positivethoughts
    , contributor
    Comments (1809) | Send Message
     
    Isn't Corzine addressed as 'Honorable' when he is introduced into legal proceedings? I remember seeing him have a name plate that stated such when he was giving testimony before Congress. If indeed he has been addressed as 'Honorable', then there is no way he could of stole any money. Only the regular people addressed as 'Mr.' and 'Mrs.' could be capable of such things.

     

    Here is the proof:

     

    http://bit.ly/GYdX9U
    24 Mar 2012, 07:42 PM Reply Like
  • dixie
    , contributor
    Comments (276) | Send Message
     
    Name plate must be in error as there is no "honor" among thieves like JC.
    24 Mar 2012, 08:17 PM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    There is honor among the leaders of the thieves !
    Remember Boris an Natasha... They were the honorable head of
    "The Villians Thieves an Scondrals Union !"

     

    On the stock talk now there is a tout that Ceasar was killed by a banker because of the Rome real estate crash !

     

    Senator Brutus Corsine.... ancestor ?
    24 Mar 2012, 08:23 PM Reply Like
  • Financial Insights
    , contributor
    Comments (945) | Send Message
     
    Steal a billion dollars in citizens money, and Obama still isn't sicking federal law enforcement and regulators on Corzine. What a joke.
    24 Mar 2012, 10:57 PM Reply Like
  • Ray Lopez
    , contributor
    Comments (1507) | Send Message
     
    Interesting that Stanford Ponzi scheme Texan billionaire Allen Stanford made the same defense--that he was not aware of any Ponzi scheme, it was the fault of his right-hand man--and this defense did not work. Why will in work with Corzine? That speaks volumes.
    25 Mar 2012, 05:22 PM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    Paper trail Ray, Stanford was nailed an they could follow the money. So far even the forensic accountant haven't found the $s.. hmmmm
    25 Mar 2012, 05:24 PM Reply Like
  • Russ Winter
    , contributor
    Comments (648) | Send Message
     
    Corzine Theft will be the Biggest Show Since Watergate:
    http://bit.ly/GMJgS4
    25 Mar 2012, 08:26 PM Reply Like
  • Financial Insights
    , contributor
    Comments (945) | Send Message
     
    haha Eric "empy suit" holder.
    25 Mar 2012, 08:30 PM Reply Like
  • GalXZ
    , contributor
    Comments (56) | Send Message
     
    I sold my CME shares because I am not sure of the ramifications with their involvement in this crisis. So now I can sleep at night.
    26 Mar 2012, 06:16 PM Reply Like
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