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Corzine Ordered $200M Moved to JP Morgan Days Before MF Global Collapse

Posted By admin On March 23, 2012 @ 3:44 pm In Featured Stories,Tile | Comments Disabled

Phil Mattingly and Silla Brush
Bloomberg [1]
March 23, 2012

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.

Full story here. [1]

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URLs in this post:

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

[2] Corzine Corzined – Congressional Panel Finds Former MF Global CEO Ordered JPM Fund Transfer: http://www.prisonplanet.com/corzine-corzined-congressional-panel-finds-former-mf-global-ceo-ordered-jpm-fund-transfer.html

[3] Corzine Directly Ordered Transfer of Stolen Customer Funds: Gerald Celente Reports: http://www.prisonplanet.com/corzine-directly-ordered-transfer-of-stolen-customer-funds-gerald-celente-reports.html

[4] Media Runs Defense For Corzine After MF Global Revelation: http://www.prisonplanet.com/media-runs-defense-for-corzine-after-mf-global-revelation.html

[5] Jon Corzine will not face criminal charges over MF Global: report: http://www.prisonplanet.com/jon-corzine-will-not-face-criminal-charges-over-mf-global-report.html

[6] MF Global Money Now “Missing” After Reports It Was Sent To JP Morgan: http://www.prisonplanet.com/mf-global-money-now-missing-after-reports-it-was-sent-to-jp-morgan.html

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