Corzine Corzined - Congressional Panel Finds Former MF Global CEO Ordered JPM Fund Transfer

Tyler Durden's picture




 

The only thing that could top today's epic market insanity and hilarity, would be that Corzine is himself about to be Corzined. Just released from Bloomberg:

  • MF GLOBAL'S CORZINE ORDERED FUNDS MOVED TO JPMORGAN, MEMO SAYS
  • CORZINE'S `DIRECT INSTRUCTIONS' CITED BY CONGRESSIONAL PANEL
  • MF GLOBAL TRANSFER WAS USED TO COVER OVERDRAFT, PANEL SAYS
  • MF GLOBAL FINDINGS CITED IN MEMO OBTAINED BY BLOOMBERG NEWS

And so we can now add perjury to felony embezzlement. Which means we now have to wait to find just which MF'er (and JPM'er) will be given a promise of untold millions if they only get Fab Tourre'd for a few years, and spend 5-7 in minimum security state prison instead of brave Jonny.

From Bloomberg:

Jon S. Corzine, MF Global Holding Ltd.’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.
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’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.

 

Vinay Mahajan, global treasurer of MF Global Holdings, wrote an e-mail on Oct. 28 that said JPMorgan was “holding up vital business in the U.S. as a result” of the overdrawn account, which had to be “fully funded ASAP,” according to the memo.

 

O’Brien Letter

 

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.

Steven Goldberg, a spokesman for Corzine, declined immediate comment.

Oops. Of course, in Jonny's defense there was no perjury here. The truth was merely rehypothecated.

Full memo below. And for those who say it is not a smoking gun, read last paragraph on page 4 and first paragraph on page 5. It appears the administration has turned on "JC"

MF Memo

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Fri, 03/23/2012 - 16:15 | 2284794 Concentrated po...
Concentrated power has always been the enemy of liberty.'s picture

PRISON, BITCHES!!!!!!!!!!!!!

Fri, 03/23/2012 - 16:20 | 2284825 KMS
KMS's picture

Federal, Pound-You-In-the-Ass-Prison!?

I hope the prison guards put him with some 320# 6'8" CPU All-Star; go home, make a sandwich, and sleep good that night. Then come back the next day - with a mop.

Fri, 03/23/2012 - 16:24 | 2284853 Troll Magnet
Troll Magnet's picture

they'll just "ken lay" him meaning he'll be pronounced dead but no one will be able to confirm.

Fri, 03/23/2012 - 16:54 | 2285006 iDealMeat
Fri, 03/23/2012 - 17:04 | 2285035 Fukushima Sam
Fukushima Sam's picture

Dear Mr. Corzine,

We have just put in the mail a package to you, with contents of one jar of Vasoline.  The great thing about Vasoline for someone in your situation, as compared to a water-soluble lubricant, is that it takes a very long time to wear off.  You may need to ask your wife to smuggle it in for you.

Signed,

The People

Fri, 03/23/2012 - 17:07 | 2285045 Silver Bug
Silver Bug's picture

Also Max Keiser was SPOT on, he called this months ago! Priceless.

 

http://jamesturkblog.blogspot.ca/

Fri, 03/23/2012 - 17:09 | 2285049 NotApplicable
NotApplicable's picture

Meanwhile it only took the fedgov weinies FIVE MONTHS to figure it out.

Fri, 03/23/2012 - 17:14 | 2285062 Hacked Economy
Hacked Economy's picture

Hey...where'd my 'Track' tab go?  How am I supposed to go back to my previous threads?

Fri, 03/23/2012 - 17:15 | 2285064 TruthInSunshine
TruthInSunshine's picture

Another JPM competitor bites the dust.

How many competitors to JPM have bitten the dust since 2008?

 

Fri, 03/23/2012 - 17:30 | 2285084 nope-1004
nope-1004's picture

Congratulations to the Honorable Jon S. Corzine.

Even if he is a liar, thief, purjer, husband, father, and all around prick.

 

Fri, 03/23/2012 - 17:57 | 2285214 Doña K
Doña K's picture

I bet he is gonna plea bargain and do some time near the end of the year, so that Obama will pardon him on his way out of office in January.

TIMING BITZES!

Fri, 03/23/2012 - 18:44 | 2285391 fuu
fuu's picture

"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."

 

Which one is the Vampire Squid again?

Fri, 03/23/2012 - 18:59 | 2285432 GetZeeGold
GetZeeGold's picture

 

 

FREE JON CORZINE!!!!

 

Oh wait......he is.

 

Moved to France to hangout with his pal Roman Polanski. I think he plans on making the move permanent.

 

Fri, 03/23/2012 - 19:14 | 2285476 flacon
flacon's picture

Guys, just think of his children. Think how devistating this news must be to them who only a few days ago released their statement praising their father and his impecable conduct and dedication to his family and all of humanity. 

 

Please let us spend a moment of solemn silence thinking of the children. Those poor, poor children. 

 

....

 

Thank you.

 

FUCK JON CORZINE'S 'CHILDREN'! SCUM FAMILY!

Fri, 03/23/2012 - 19:20 | 2285490 ChrisFromMorningside
ChrisFromMorningside's picture

If they are like other "children of the uber-wealthy" that I have met ... They probably barely know their father, let alone give a fuck what happens to him. They just need to make sure they get that trust fund.

Fri, 03/23/2012 - 19:30 | 2285526 Troll Magnet
Troll Magnet's picture

boy, somebody's on a junking spree.  corzine jr. trolling ZH?

Fri, 03/23/2012 - 22:04 | 2285793 AldousHuxley
AldousHuxley's picture

Establishment kicking out non-elite background players on wall st.

 

They are all guilty, but only the chosen ones are exempt from prosecution:

  • Ivy League undergraduate
  • Harvard of Columbia MBA or JD
  • Goldman Sachs's IB preferred

OK'ed by establishment:

Hank Paulson: Dartmouth + Harvard MBA

Goldman Sach's Lloyd Blankfein: Harvard + Harvard Law

Obama: Columbia + Harvard Law

Citibank's Vikram Pandit: Columbia + Columbia MBA/PhD

JP Morgan's Jamie Dimon: Tufts + Harvard MBA

Lazard's Bruce Wasserstein: U Michigan + Harvard JD + Harvard MBA (unfortunately he ended up dying young due to work)

 

NOT approved by the establishment:

MF Global's Jon Corzine: Illinois State U undergrad + U of Chicago MBA

Lehman's Dick Fuld, Jr.: Colorado State U undergrad + NYU MBA

Bank of America's Ken Lewis: Georgia State University

 

 

Fri, 03/23/2012 - 22:36 | 2285851 smiler03
smiler03's picture

I've only read "Corzine Corzined" and it's made my year, I hope it's true. Now back to reading the article.

Sat, 03/24/2012 - 00:42 | 2286008 Michael
Michael's picture

If Corzine is not arrested soon, someone should make a citizens arrest or form a citizens grand jury to indict that criminal, if the government refuses to do its job.

Citizens Grand Jury Validity and Legal Authority

http://www.youtube.com/watch?v=O6Hb0pW1eoE

Sat, 03/24/2012 - 01:47 | 2286076 Oh regional Indian
Oh regional Indian's picture

The God's of WAR will save the Dog's of Money. But the game is now in the sencond half of innings 7 I think. Sure feels like it.

ori

/un-holy-smoke-and-biblical-fire-from-the-sky/

Sat, 03/24/2012 - 02:22 | 2286112 Michael
Michael's picture

On Trayvon Martin;

Now all the black leaders are playing the black victimization race card to get more government tax payer money and benefits for their? black group, and to take away my gun rights.

That's the bottom line.

The Protocols of the Elders of Zion are currently in effect, as they have been for many decades.

The Jews perfected the victimization race card and the blacks are just following the same plan. Just search "Defamation True Stories", by the Israeli documentary film maker Yoav Shamir, and see the documentary on how the Jews perfected the victimization race card strategy.

Or follow this link to the first posting of this film where I hijacked the top of the comment section on the first page. You can read my comments from a couple of years ago, first one is #19 on the front page where I posted under the same name I'm currently using.

Note: Don't worry about the warning on the page, the Jews are just trying to discurge people from viewing the video there.

http://wideeyecinema.com/?p=7208

Sat, 03/24/2012 - 03:33 | 2286160 Michael
Michael's picture

Thank God the shooter was Hispanic and not a Florida White Cracker.

Sat, 03/24/2012 - 09:45 | 2286392 RafterManFMJ
RafterManFMJ's picture

 

 

No, unfortunately he is a white hispanic; says so right here in this YAHOO news article.

http://news.yahoo.com/blogs/lookout/police-chief-trayvon-martin-case-step-down-194855481.html

Zimmerman, a white Hispanic, was patrolling the streets of a gated community in Sanford on Feb. 26, when he spotted Martin and told a police dispatcher that a "black male" was acting "suspicious." Zimmerman, 28, ignored a warning from the dispatcher not to pursue Martin, and a violent confrontation ensued, leaving Martin dead.


Sat, 03/24/2012 - 09:56 | 2286403 GetZeeGold
GetZeeGold's picture

 

 

You seemed to be lost.

 

This article is about Jon Corzine.

 

Sat, 03/24/2012 - 03:57 | 2286170 Michael
Michael's picture

If you watch this video you will see a Jewish woman working for the ADL saying to her supervisor, there was someone complaining about people making anti-semetic remarks on a website.

Sat, 03/24/2012 - 04:41 | 2286204 Michael
Michael's picture

Well, the IPad 3 didn't kill the Physical Library this time around, I wonder how many more tries it will take?

Sat, 03/24/2012 - 06:05 | 2286233 rcintc
rcintc's picture

We all know what's going to happen. January 19, 2013 - OBAMA!'s last day in office (hopefully and the day before Ron Paul's fist) - he will get a presidential pardon at 11:59am.

He will be in jail for all of 3 days maybe.

Sat, 03/24/2012 - 14:08 | 2286823 AldousHuxley
AldousHuxley's picture

The REAL question is....

 

Who

Was

Corzine

Working

For?

Fri, 03/23/2012 - 22:47 | 2285868 Ned Zeppelin
Ned Zeppelin's picture

No Skull and Bones at Georgia State, eh?

Fri, 03/23/2012 - 22:54 | 2285878 cynicalskeptic
cynicalskeptic's picture

Expect 'insider trading' arrests on Monday of other minor 'outsider' figures for 'crimes netting them 'millions' or 'tens of millions'.   Once hundreds of millions are involved, you're scot-free.  Ask Mozilla.

Fri, 03/23/2012 - 23:11 | 2285897 smiler03
smiler03's picture

This O'Brien bitch has to go down too. The bitch refused to give evidence without immunity. I presume that having been subpoenaed that the bitch will have no immunity?

Fri, 03/23/2012 - 19:30 | 2285528 flacon
flacon's picture

"Daddy, tell us a bed time story."

 

"CORZINE: Once upon a time, there was a half bald headed man who was CEO of a vampire squid. He had no talent other than deceiving people and stealing the money from the villagers. This man gave birth to some children. Those children are you. That's right, you are the spawn of a vampire squid."

 

 

Fri, 03/23/2012 - 19:39 | 2285550 r00t61
r00t61's picture

CHILDREN: "That explains these blood-sucking tentacles, then."

Fri, 03/23/2012 - 19:52 | 2285580 flacon
flacon's picture

CORZINE: "I was a

Wankin'. Fuckin'. Banker." 

http://www.youtube.com/watch?v=IPNyU0a2ko8

 

Fri, 03/23/2012 - 21:50 | 2285770 FEDbuster
FEDbuster's picture

Bernie Madoff's new cellmate?

Sat, 03/24/2012 - 04:53 | 2286211 Element
Element's picture

Maybe that can start up a drama club, perform Fiddler on the Roof, do a tour of the promised land, and mysteriously vaporise in the middle of Act 3, and never be seen again?

Fri, 03/23/2012 - 20:04 | 2285605 The Watchman
The Watchman's picture

What's the best way to cook a squid? Vaporize it!

Fri, 03/23/2012 - 20:27 | 2285646 Oracle of Kypseli
Oracle of Kypseli's picture

When I read that banks will pay 90 cents on a dollar for claims, I knew something was brewing. I hope that most did not sign as now they will be free to sue for lost revenue in civil court. Corzine is toast. He will be in litigation forever. No more castles in France.

Sat, 03/24/2012 - 00:11 | 2285969 Chuck Walla
Chuck Walla's picture

Moved to France to hangout with his pal Roman Polanski. I think he plans on making the move permanent.

 

Why not? Same crime, different victim...

Fri, 03/23/2012 - 19:03 | 2285442 DormRoom
DormRoom's picture

jesus crhist:  Oh look.  another JC doing God's work.

Fri, 03/23/2012 - 19:58 | 2285592 flacon
flacon's picture

In the name of God the Father (JP Morgan), the Son ('JC' Goldman Sachs), and the Holy Spirit (HSBC/Bank of America).

Sat, 03/24/2012 - 02:09 | 2286098 Deo vindice
Deo vindice's picture

"Thou shalt not steal" ain't the only commandment you know.

Just saying...

Fri, 03/23/2012 - 18:13 | 2285287 blindman
blindman's picture

remember the titanic!

Fri, 03/23/2012 - 18:29 | 2285347 Dugald
Dugald's picture

You really think it will happen? Who else in the company has initials JC and who is willing to be regulularly sodomised for a shit load of moola?

Ever noticed how easily slime slips off the hook?

Fri, 03/23/2012 - 19:17 | 2285485 JPM Hater001
JPM Hater001's picture

"Another JPM competitor bites the dust."

They all eventually fall at the feet of my nemesis.

Fri, 03/23/2012 - 19:49 | 2285578 HoofHearted
HoofHearted's picture

Can we possibly take down Corzine, JP Morgan, and Obama all in one fell swoop? No way my life gets that good!!! No way.

Fri, 03/23/2012 - 20:58 | 2285696 LeBalance
LeBalance's picture

"We?"

Sat, 03/24/2012 - 02:12 | 2286101 Deo vindice
Deo vindice's picture

  Can we possibly take down Corzine, JP Morgan, and Obama all in one fell swoop? No way my life gets that good!!! No way.

Their places would simply be filled with others waiting in the wings.

Fri, 03/23/2012 - 20:17 | 2285629 Benjamin Glutton
Benjamin Glutton's picture

Exactly...

 

Why has Bloomberg published a 3rd hand assertion without documentation and attributed it to someone(Edith O'Brien)who by all accounts will plead the 5th. When you read the Bloomberg article note that it references an e-mail written by O'Brien and a memo written by congressional staffers.

from BMG;

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.

Now compare the Bloomberg innuendo to the unequivocal Corzine quote.

“I never gave any instruction to misuse customer funds, I never intended anyone at MF Global to misuse customer funds and I don’t believe that anything I said could reasonably have been interpreted as an instruction to misuse customer funds,” Corzine told lawmakers in December.

It's very simple...MSM and Congress will give JPM and other properly connected thieves all the room they need to negotiate the best possible outcome for JPM etc. etc...

 

 

 

 

Sat, 03/24/2012 - 09:49 | 2286396 disabledvet
disabledvet's picture

this is actually a topical point. the question should be "where is the anti-terror financing report on the matter." one cannot simply transfer 200 million dollars from a soon to be defunct financial institution in the USA to an American branch of a bank in Britain and "no one has a clue." How can these massive fund transfers still go on and no one in the oversight branch of Government have even a passing interest in "how do"? where's the Federal Reserve here? The only thing these folks "fighting the war on terror" appear to be doing is destroying the American people's simple "freedom from being groped at the airport" while the "money for nukes" cabbage flows around like it was never meant to be contained or tracked or traced in the first place. brazen corruption by people who have no interest in being anything but.

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