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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WillyGroper's picture

Perhaps they're checking the contents of their jewelry boxes & bank accounts.

Benjamin Glutton's picture

I thought this piece included evidence...Corzine sent authorization to transfer Company funds and a couple of morons transferred customer funds???

 

 

WTF???

Global Hunter's picture

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.

Benjamin Glutton's picture

Was Bloomers holding Jamie's hand when he authorized this "story"?

“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.

notice only "direct instructions" in quote.

Let's see the "direct instruction" and not a now 3rd party description.

 

 

 

 

It was not me's picture

So if JP Morgan gets signed document that it is ok to transfer the funds from client account to corporate account then it is fine with them and it is legal??? What the fuck! Even a guy selling hotdogs in front of JP Morgan office building in Manhattan knows that it's illegal. Custodian bank has responsibilities that cannot be overridden even by Mr Change himself.

Theta_Burn's picture

Helluva good start, but lets not start buying rounds just yet.

Prepair for lawyers/deals/hes cooperating BS. (can't wait to see how much honor there is umongst thieves) 

Unless of course theres a coronary, or a bolt of lightning.

Friends of Corzine=shitting 32oz gold bricks.

Can we drop the Honorable now??

 

 

 

GetZeeGold's picture

 

 

Can we drop the Honorable now??

 

Consider it done.

 

I'm still trying to find out who that lone -1 quy is starting at the top of the comments........Jon.......is that you?

 

TheFourthStooge-ing's picture

Advice for the Dishonorable Jon Corzine:

If you don't start singing,

your butthole starts stinging.

Burma Shave®

 

flacon's picture

Department of Justice is under which wing of government: Executive, Judicial or Legislative? 

If you answered EXECUTIVE you are correct!

TwelfthVulture's picture

They are ALL under the FINANCIAL branch of the government.  You're new here, aren't you?

bdc63's picture

Has anyone noticed that there is a near media blackout on this?  I've had CNN on the background for about 2 hours this morning and NOT ONE SINGLE MENTION OF IT.

Concentrated power has always been the enemy of liberty.'s picture

the "corzine rule" hahahahahahahahah

http://online.wsj.com/article/SB1000142405270230472440457729387105146082...

CEO's must sign off on large transfers of customer funds....LOL

hahahahahahahahah

 

Banana republic!!!!!!!!!!!!!!!!!!!!!!

Stax Edwards's picture

I hope the name sticks.  A fitting legacy for that crook.

SHEEPFUKKER's picture

So the email said the funds were transferred per "JC's direct request".  It wasn't J. Corzine that ordered the transfer, it was Jesus Christ.......doing god's work. 

NotApplicable's picture

LOL

More likely they'll find some Indian guy in a back room with those initials and blame it on him.

smiler03's picture

Ponzi Madoff Corzine

The name should stick, justice permitting.

Stuart's picture

no, not prison.  stand him up against a wall. start with the ankles, slowly aiming higher after each shot.    

Piranhanoia's picture

He has to squeal.  He has to tell tales and name names.   If he is found to have committed some crime as a public servant that still carries the death penalty,  fine.   

Since he has to squeal,  his friends will use crazy glue if they can get to him first.

FeralSerf's picture

Cheney says waterboarding is not torture.

SillySalesmanQuestion's picture

If he does squeal...please, oh lord please , let him bleat "It was the Devil Lord, it was Jamie and Blythe that made me do it...I swear!

TheFourthStooge-ing's picture

Just chain him to a stake and send an invitation to all of the MF Global customers that he robbed.

 

Kaiser Sousa's picture

I keep telling ya'll...ain't shit gonna change until one of these mother fucking bankers is shot and got....there ain't no law...just the bankers...
FUCK ALL BANKERS AND THEIR BITCH OWNED POLITICIANS...
LYNCH MOB GET IN EFFECT BITCHEZ....

SheepDog-One's picture

Until theyre showing bankers dangling from lamp posts, the 'in-your-face' criminality festival goes on and on and on.

TheFourthStooge-ing's picture

Occupy Wall Street lamp posts...with bankers.

 

Papasmurf's picture

Just one?  One does not set  a trend.

SHEEPFUKKER's picture

The honorable J. Corzine coming to a FEMA camp near you. 

UP Forester's picture

Too bad he'll be visiting you and yours as Big Sis's replacement....

smiler03's picture

That word "honorable" makes me wanna puke. Like our British bastard "sir" Fred Goodwin, makes me wanna puke.

sessinpo's picture

Another sacraficial lamb to the political wallstreet god of corruption. Let the games continue.

LongSoupLine's picture

 

 

 

God, PLEASE tell me Dimon himself approved the transfer, and Bernanke, Geithner and Obama were all on the Cc line of the email!!!

GetZeeGold's picture

 

 

That's almost sultry porn you penned there.

 

OneLessZombie's picture

Does anyone here believe that outright fraud and lying before a congressional committee by the well connected receives serious jail time?  LOL

optimator's picture

He didn't perjure himself, he simply "misspoke".

Element's picture

Ben did not monetise the debt, he just mis-printed a few trillion FRNs.

Obama did not make war, he's just mis-bombed a few countries (... wot? ... it can happen!)

Timmah isn't a tax cheat, he just mis-accounted all of his GS income stream.

Gold Dog's picture

"It depends on what your definition of "is" is."

ihedgemyhedges's picture

Say hi to Bernie for me while you're in there Mr. C. Ok? Oh, what, you were a senator, governor, AND ran Goldman?? AND YOU WERE A BUNDLER FOR OBAMA CAMPAIGN?!?!?!

Oh ok, never mind then............

solgundy's picture

BS to prison....Congress refers charges to Eric Holder...Duh!...you want to see Corzine do the "perp walk"?....start stuffing the ballot boxes to get rid of the Criminal-In-Chief

unclened's picture

what makes this even funnier is that London seems to be the jurisdiction where US firms can easily f*ck their customers in the ass. Lehman did it and MF Global did it in style! The greatest bit of this story is that MF Global used client cash to cover a margin call and JPM get to keep it!! TCF my ass!!! 

Buck Johnson's picture

The released this information and John Corzine is screwed.  He moved it knowing that he shouldn't do it and he said he never authorized movement or co-mingling of accounts.

ACP's picture

You Jon Corzine, are hereby sentenced to a Federal "pound me in the ass prison" for a period of not less than 5 years.

AND, you are a VERY BAD MAN!