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Corzine stole the money

Well, not all the money. But a good chunk of it. 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.

Barry Zubrow, JPMorgan’s chief risk officer, called Corzine to seek assurances that the funds belonged to MF Global and not customers. JPMorgan drafted a letter to be signed by O’Brien to ensure that MF Global was complying with rules requiring customers’ collateral to be segregated. The letter was never returned to JPMorgan, the memo said.

The money transferred came from a segregated customer account, according to congressional investigators. Segregated accounts can include customer money and excess company funds.

Corzine testified that he never intended a misuse of customer funds at MF Global, and that he doesn’t know where client funds went.

“I did not instruct anyone to lend customer funds to anyone,” Corzine told lawmakers in December.

Well, sure. After all, "lend" is not the same as "transfer." See item 6 below.

  1. I do not know who stole that money.

  2. I do not know who stole that money.

  3. I do not know who stole that money.

  4. I do not know who stole that money.

  5. I do not know who stole that money.

  6. I do not know who stole that money.

  7. I do not know who stole that money.

  8. I do not know who stole that money.

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Comments

Submitted by jawbone on

Uh oh. His bad.

Now, it could be that somone simply used his email account to send the email authorizing the transfer, right? Plausible deniability??

And, somehow, the Freeh investigation didn't turn up this transfer? Or...did I miss something.... And Morgan/Chase just assumed possession is 9/10's of the law, so it was all theirs to keep.