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:


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 - 17:23 | 2285088 Things that go bump
Things that go bump's picture

The track tab disappeared on Wednesday.  Below that is a link that says "Follow this user's comments." I haven't tried it to see if it performs the same function.

Fri, 03/23/2012 - 17:42 | 2285134 MsCreant
MsCreant's picture

Track your own comments to test run, does great.

Fri, 03/23/2012 - 18:03 | 2285242 Things that go bump
Things that go bump's picture

I see that - thanks.

Fri, 03/23/2012 - 18:21 | 2285314 disabledvet
disabledvet's picture

the fact that it took this long is not a sign of incompetence on the part of the governnment interestingly...

Fri, 03/23/2012 - 18:47 | 2285398 Christophe2
Christophe2's picture

No kidding.  How long does it take to parse through the emails of the company, especially those surrounding the critical few days preceding the bankruptcy?


The fact that this is a chap. 11 bankruptcy (a reorganization) rather than a chap.7 (liquidation), with all the ensuing benefits for the MFG criminal executives, who get to stay on and not only cover their tracks but also potentially get massive bonuses is a brutal slap in the face of all the muppets trying to make an honest living in Amerikkka.  We don't see Bloomberg interviewing Bill Black and talking about that, huh?


Above all, I'm amazed that any evidence remains, or is being exposed by the rats conducting the non-investigation...

Fri, 03/23/2012 - 20:02 | 2285601 DeadFred
DeadFred's picture

The evidence has been there all along. It was being held in reserve for the right time. It's impossible no one knew about this months ago so the critical question to ask is "Why are they revealing this now?" It might be the start of the DUMP half of the latest pumpNdump cycle. There could be some other motivation but there is absolutely no way this Email was just discovered (un-vaporized?). Why now?

Fri, 03/23/2012 - 21:52 | 2285776 TheFourthStooge-ing
TheFourthStooge-ing's picture

DeadFred said:

There could be some other motivation but there is absolutely no way this Email was just discovered (un-vaporized?). Why now?

In a well written play, events like this don't just happen. This could have been revealed in an earlier act, but it wasn't. Given what has transpired over the last decade in the world of unpunished financial crime, the script has certainly taken an unexpected twist.

Why now, sir, indeed. Touché.


Sat, 03/24/2012 - 05:06 | 2286114 Bringin It
Bringin It's picture

DeadFred, Stoogie - Why now? 

To placate the growing and grumbling mob.  Bread and circus.  Threaten to throw a gladiator to the lions for a change.  But only threaten.  For now.

New outrages must surely be in store and this event will show/signify "balance".

When we see the PERP_WALK it's real.

Where is the perp-walk?

Sat, 03/24/2012 - 09:02 | 2286348 Everybodys All ...
Everybodys All American's picture

It's simple ... MFGlobal is Obama's Watergate and there is a coverup going on.

Fri, 03/23/2012 - 18:57 | 2285429 ChrisFromMorningside
ChrisFromMorningside's picture

It took them five months to figure it out? Or it took five months before they could no longer suppress the truth and it became glaringly obvious?

Sat, 03/24/2012 - 09:53 | 2286401 RafterManFMJ
RafterManFMJ's picture

Hey, has anyone heard any rumors about Silver/Gold manipulation? I think I heard something about this 3-5 years ago...I vaguely recall there is an ongoing's that USS Maine investigation going? 

Fri, 03/23/2012 - 21:09 | 2285717 Christoph830
Christoph830's picture

Obama's ratings went down in that five-month span. Romney has become a clear favorite in a head-to-head matchup so theyve decided to release the hounds on Corzine now. I'm so tired of this shit

Sat, 03/24/2012 - 09:58 | 2286405 disabledvet
disabledvet's picture

i agree. everyone is corrupt. the media has the goods on all the politico's. you're better off watching porno. it's more interesting and informative at this point.

Sun, 03/25/2012 - 00:05 | 2287822 Xkwisetly Paneful
Xkwisetly Paneful's picture

There is a lot of incredibly stupid stuff posted on this site.

However since direct betting exists on the election and millions of dollars in offers are currently available it isn't that tough to actually look at financially staked odds instead of social science bullshit,

and since that is as easy as punching something into a keyboard,

it is pretty stupid to post one guy is ahead when the other guy is just under a 2/1 favorite win.

I am so tired of this shit.

Fri, 03/23/2012 - 18:50 | 2285409 Zero Govt
Zero Govt's picture

Oooh Christmas comes early

put him in jail and we'd have 2 XMas' come along in one

Fri, 03/23/2012 - 17:09 | 2285053 MsCreant
MsCreant's picture

The people have better things to do with their petroleum than giving it to John for his ass.

Fri, 03/23/2012 - 17:15 | 2285065 Rich V
Rich V's picture

I'll donate a pound of salt that he can pack up his ass

Fri, 03/23/2012 - 17:27 | 2285103 WillyGroper
WillyGroper's picture

OK, OK, I'll donate the lemon juice.

Fri, 03/23/2012 - 18:00 | 2285229 Doña K
Doña K's picture

Maybe his kids ratted him out. Too much guilt and pay now is always easier tha pay later.

Sat, 03/24/2012 - 00:59 | 2286027 old naughty
old naughty's picture


But maybe the Matrix is falling apart...

We shall see.

Fri, 03/23/2012 - 18:51 | 2285410 Village Idiot
Village Idiot's picture

use a 6" pipe threader and some chineaze hot mustard...

Fri, 03/23/2012 - 21:56 | 2285780 TheFourthStooge-ing
TheFourthStooge-ing's picture

...with an LSD, PCP, and Jalapeño enema.


Sat, 03/24/2012 - 00:49 | 2286013 PC Load Letter
PC Load Letter's picture

He deserves baking soda

Sat, 03/24/2012 - 16:19 | 2287008 Big Corked Boots
Big Corked Boots's picture

Jim McGreevey (another proud NJ politician FYI) can help him with packing his fudge.

Fri, 03/23/2012 - 22:24 | 2285826 paddy0761
paddy0761's picture

I'll donate a length of PVC pipe and some barbed-wire.

Fri, 03/23/2012 - 21:39 | 2285753 eatthebanksters
eatthebanksters's picture

MsCreant, how about picturing him smoking a jailhouse cigar (or 3)!

Fri, 03/23/2012 - 17:05 | 2285040 Sophist Economicus
Sophist Economicus's picture

Quick, queue the Vanity Fair article, get the NY Times to find pictures of Jonny posing with little black children in Harlem next to a hospital, somebody do something, please!!!!


Sat, 03/24/2012 - 08:55 | 2286338 Everybodys All ...
Everybodys All American's picture

Cramer just the other day said on CNBC that he didn't think Corzine did anything wrong. Obviously before this news but it goes to show you the coverup and deceit is on going.

Fri, 03/23/2012 - 17:00 | 2285029 Silver Bug
Silver Bug's picture

The sad thing is, he more than likely STILL won't go to prison!

Fri, 03/23/2012 - 17:10 | 2285054 Colombian Gringo
Colombian Gringo's picture

Agreed. The lying sack of shit called Corzine will walk. Instead,  1,000,000  more americans will be thrown into jail for marijuana offences to show that Obama is tough on crime.

Fri, 03/23/2012 - 19:28 | 2285514 Umh
Umh's picture

Unless they're illegal immigrants.

Fri, 03/23/2012 - 17:46 | 2285165 raeb
raeb's picture

Or, an immediate pardon from Obama.

Fri, 03/23/2012 - 19:32 | 2285228 Kali
Kali's picture

Yup, the Mike Milken strategy.  Probably the ONLY reason he was found Guilty. Assholes, all of em.  This goes beyond regulatory capture, we're onto total government captcha now bitchez!


 Milken got sentenced to ten years in prison, only served <2yrs.  Never stopped trying to get a presidential pardon, both Clinton and Shrub turned him down.  However, a fact i had forgotten in the mists of time, he was a precedent setting case for prosecuting financial crimes with RICO (by,are u ready for it RUDY GIULANI!).  You listening ERIC!!!


Fri, 03/23/2012 - 22:30 | 2285841 CompassionateFascist
CompassionateFascist's picture

Milken never served a day in "prison". Went to a WC crime prison farm, spent 2 years growing tomatoes, playing tennis, reading the New Yorker. If, in the unlikely circumstance Obama's #2 bagman - Corzine - ever does get convicted of anything, that'll be his "punishment".

Sat, 03/24/2012 - 01:50 | 2286078 Lord Blankcheck
Lord Blankcheck's picture

Milken was railroaded by the New York banksters so they could steal the junk bond market he created.That's where Mayor Giulani made his name.

Sat, 03/24/2012 - 05:28 | 2286221 Bringin It
Bringin It's picture


Sat, 03/24/2012 - 09:59 | 2286406 RafterManFMJ
RafterManFMJ's picture

Milken was railroaded by the New York banksters so they could steal the junk bond market he created.That's where Mayor Giulani made his name.

You have to wonder how these guys are psychopaths, yet such cunts; they burn and steal, then get betrayed/railroaded...and take it.  No countermoves, no mob wars. See, that's why I prefer the old-fashioned, get-your-hands-dirty mobsters. Not only do they not steal as much from you, they have the honor and balls to take out anyone who attacks them or die trying.

It's sad the .gov mobsters of today are so pansy like; I fear for our future as a nation.

Fri, 03/23/2012 - 18:33 | 2285357 FeralSerf
FeralSerf's picture

Or maybe a Bush style Scooter Libby deal.

Fri, 03/23/2012 - 21:59 | 2285786 TheFourthStooge-ing
TheFourthStooge-ing's picture

I don't know why Libby went with such a dorky nickname as Scooter. It's not like it's any better than Irving Lewis Libby.


Fri, 03/23/2012 - 18:09 | 2285272 eatthebanksters
eatthebanksters's picture

He'll be Madoff's cellmate...

Sat, 03/24/2012 - 09:04 | 2286350 Everybodys All ...
Everybodys All American's picture

MFGlobal is Obama's Watergate and there is a coverup going on.

Fri, 03/23/2012 - 17:50 | 2285189 Oleander
Oleander's picture

Can't we hold him in the dungeon of that castle of his in Scottland? The cold damp air does wonders for ones health.

Fri, 03/23/2012 - 19:43 | 2285561 FeralSerf
FeralSerf's picture

Jon Corzine, who had only $3 million of his own money in MF Global, was said to be buying a French château with his wife two weeks before the firm’s bankruptcy.

Fri, 03/23/2012 - 16:27 | 2284867 lotsoffun
lotsoffun's picture

where's eddie curry these days?

he has some predilictions


Fri, 03/23/2012 - 16:49 | 2284979 Doubleguns
Doubleguns's picture

Seems he might be getting ready for prison. He seems to be checking out Barrys tits in that photo.

Fri, 03/23/2012 - 17:54 | 2285206 Eireann go Brach
Eireann go Brach's picture

Based upon these findings, I would say he is a shoe in for the next Chairman of the Federal Reserve!

Fri, 03/23/2012 - 21:41 | 2285757 eatthebanksters
eatthebanksters's picture

Perhaps Timmy's replacement...

Fri, 03/23/2012 - 21:08 | 2285715 non_anon
non_anon's picture

odds are Jan. 20,2013 Presidential Pardon

Fri, 03/23/2012 - 16:20 | 2284830 BliptoP3
BliptoP3's picture

Nah, the Department of Justice has better things to do.

Fri, 03/23/2012 - 16:28 | 2284875 SteveGennisonBa...
SteveGennisonBallWasher's picture

Where's his family's public letter now?  Let's revisit that again.

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