Four Bullet Points Explaining How JPMorgan Doubled Its Money From MF Global's Corpse In Seven Months

Tyler Durden's picture

Don't read this if you have high blood pressure or if you are a client of MF Global's, whose money is still held by JP Morgan.

  • JPMorgan is put on MF Global bankruptcy committee on November 7, 2011
  • Two weeks later, JPMorgan buys MF Global's 4.7% in LME for 39 million in a "competitive bidding" process
  • 7 months later, on June 15 2012 the LME gets an offer for $2.2 billion from China's HKEX, making JPM's stake worth $103 million
  • JPMorgan makes over 100% cash on cash return in 7 months while MFGlobal money is still stuck at JPM.

In the meantime, Jon Corzine was, is and will always be a free man.

* * *

P.S. the topic of why China is buying the world's biggest metals exchange, one which in a lovely harbinger of things to come 2 months ago very symbolically replaced Sterling settlement with Renminbi, is a different matter entirely. One which just may have to do with the fact that domestic Chinese companies have unprecedented stockpiles of everything, pledged as collateral everywhere. Collateral whose prices would be easier to manipulate if one also controlled the exchange where they all trade...

h/t Zach

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Mr. Fix's picture

The lawlessness continues..........

eatthebanksters's picture

Tim Geithner, Larry Summers and Barry Obama:  saving the world's financial system to save the world, only to destroy the world as society realizes there are no rules or laws and therefore no justice.  

MillionDollarBonus_'s picture

This is way too conspiratorialistic. JP Morgan profited from a smart trade. Simple as that. Why do ZHers have to make everything into a conspiracy?

resurger's picture

LBO Chinese money "Vaporised"


Max Fischer's picture



I think it's important for ZH readers to know that all the money held at JPM has been returned to MF Global's bankruptcy trustee. To say that the money is "still stuck" at JPM is factually incorrect.    


Silver Shield's picture

Thanks brother for posting :)

Lots of moving pieces to put together...

All moving towards the destruction of the middle class.

Keep stacking!

YBNguy's picture

Who else bought some JPM stock in the wake of their loss and low price only to see it go up even with big JD before the congresscritters? I know I did. JPM is teflon and will be around long after the apoclypse. If you can't beat the corruption why not jump on the bandwagon to profit?

markmotive's picture

Just another step in the slow death of the global financial services sector.


Egan-Jones: As the banking sector goes, so goes the country

macholatte's picture


The LME received binding offers from Hong Kong Exchanges, CME Group Inc., IntercontinentalExchange Inc. and NYSE Liffe, the London-based derivatives arm of NYSE Euronext. It knocked out NYSE Liffe and CME in May, and eliminated ICE after a board meeting this week.

Hong Kong Exchanges says it will be the best possible steward for the LME in Asia and particularly in China, where it will help the LME achieve its long-sought-but-to-date frustrated goal of warehouses to store metal.


JP Morgan is the biggest shareholder with a 10.8% stake held by various of its subsidiary firms, giving it a stake worth around GBP150 million based on the current offer price. Goldman Sachs holds the next largest stake at around 9.53%, followed by Metdist, the ring dealing firm owned by Lord Raj Bagri whose subsidiaries have a combined stake worth 9.39%.


Q&A: How Did Hong Kong Exchanges Woo LME? So Far at Least


sgt_doom's picture

Thanks or the info.

Ya know, this reminds me of that Patman Report, detailing the ownership of $607 billion through foundations and trusts by the super-rich (published by congress in 1968, so the figures were up to around 1966).

Now, with over 50,000 foundations in America, and the actual number of trusts can no longer be counted, since so many of them are offshore in OFCs which don't require official registration of trusts (now wasn't that a grand scheme???), it is virtually impossible to determine this number today, but officially the listed assets of American foundations is ........... $50 billion! ! !

Hahahahah....even if they mistakenly dropped a zero -- which they didn't -- it should be far greater than $607 billion (over half a trillion $$), and that wasn't an estimated figure, but a compiled number.

It's all a magical mystery tour today....

imaginalis's picture

The great oxymoron of non-profit

CPL's picture

All 2 trillion and the 41 trillion in unfunded liabiliities.


The hollow mountain looks good right doesn't it spook.  Suck the masters dick closer.  Just ignore the woman that gave birth to you as she feels the hot iron in her groin.  Same place that made you maggot.

Sean7k's picture

The Wall Street Journal also reported Saturday that a bankruptcy trustee representing MF Global's customers might pursue JPMorgan for several hundred million dollars in additional claims.

Like normal Max, always the liar.

Ned Zeppelin's picture

$600MM back to bankruptcy trustee. Score one for the good guys (customers).  Must have been pretty blatant thievery for JPM to not duke it out.

Sean7k's picture

I'll score one for the good guys when the money gets back to the customers. The 600 million is just part of the picture. JPM is still on the bankruptcy board and the trustee still has to have court approval to disperse funds. No one has changed the type of bankruptcy yet- which puts JPM at the head of the line.

Great piece over at silver seek on JPM manipulation and the President's working group- get the word out:

Pure Evil's picture

That's why he always get's the Million Dollar Bonus.

Dr. Richard Head's picture

Only in Wall Street and DC can failure be rewarded by upward mobility. 

As Luke of WeAreChange recently said, "Politics, it's Hollywood for ugly people."  I believe the same holds true for Wall Street cronies and cuflinks.

Colombian Gringo's picture


The wall street banksters are nothing more than glorified thugs and extortionists, and deserve to be tossed into jail. Unfortunately, in addition to the politicians and courts, they own the jails.

sgt_doom's picture

Trust some rocket scientist to make the intelligent and damning point which now fully depresses me and has ruined my day.

Raynja's picture

Wall street, it's criminal enterprise for educated people.

JohnKozac's picture

'Crime has no respect for the Sabbath.'

ebworthen's picture

MDB said: "JP Morgan profited from a smart trade."

Jon?  Jon Corzine?

francis_sawyer's picture

"smart trade" = cash out of a pyramid scheme one level above the next base...

Is it any wonder why a PYRAMID is on the back of a US dollar note?...

BlandJoe24's picture

Here's my conspiracy/fantasy du jour: 

3:55pm today "They" release their pre-programmed 5 minute Massive Market CRASH algos...

Colombian Gringo's picture

Quoting MDB: This is way too conspiratorialistic. JP Morgan profited from a smart trade. Simple as that. Why do ZHers have to make everything into a conspiracy?


Because it is a conspiracy, you fucking idiot. Or do you doubt that a group of ruthless men wouldn't meet in private to figure out how to collectively benefit by screwing everyone else? Get you head out of your ass.

MillionDollarBonus_'s picture

It's not even supported by proper facts or statistics. This conspiratorialistic story has not featured on ANY established television network. Is it on CNN? No. CNBC? No. MSNBC? Lol - this is too easy. If this is such a big story, how do you explain the fact that it hasn't featured on any of these respected channels.

Texas Ginslinger's picture MDB's drivel and automatically hit red

Ignatius's picture

M$B is a fucking genius.

What a man (I assume man, as women aren't typically this funny).

Overfed's picture

Just put a /sarc behind his post, then all will be clear.

Deo vindice's picture

I hope so. Because it is the only way one can hold out any hope for the guy.

eatthebanksters's picture

MDB is all about tongue in one who has his intellect is that misguided or stupid.  Since when have CNN, CNBC or MSNBC been major and reliable news outlets?  They have the lowest ratings on cable... 

Deo vindice's picture

He (MDB) did call them respected channels, did he not?

I almost choked while reading that ... and I wasn't even chewing on anything.

Taint Boil's picture



And the Number 1 in "News" is ..... Fox  ROFL ..... Fair And Balanced

John_Coltrane's picture

MDB also failed to mention the lack of coverage in "people", my major source for FACTS as well as factiods. 

"If it ain't on the cover of People, I'm not interested"  -Vladimir Lenin

Zero Govt's picture

why hasn't Corzine been cuffed, interviewed, held in custody, prosecuted and jailed yet MDB?

Bumma, Biden and presumably the Democratic Party used Corzine as a key economic advisor, seeing him stone cold bankrupt with high risk bets back-stopped by thieving customer money should have been a major embarrasment and cause for them to make a statement surely? ...but not a squeek, quiet as church mice from the rotten lot.

What's your take on this defeaning silence?


Dr. Richard Head's picture

Because he wears magical Obama cufflinks and has an entire Senate Committe in his pocket.  Additionally, his Class A Board seat at the Federal Reserve gives him diplomatic immunity.  Oh.....and National Security executive signing statements by Bush. Corzine's seat in the Obama Administration, exemptions within Dodd/Frank bill.  I can go on and on, but I am just a conspiracy guy and just screams the sky is falling.  i have no idea of what I speak and I am ignorant according to those around me.

Sorry, I read Dimon when you wrote Corzine.  Fuck em both.

Matt's picture

As mentioned by another poster in another thread, the people who actually took the money from the segregated funds and posted them as collateral for MF Global's own trades, were not registered with the regulator. Apparently, not being registered makes you immune to the regulations.

Also, this article is a dumbed down version of this story that was posted yesterday or the day before.

RiverRoad's picture

Right.  And the people who "signed off" on all those mortgages weren't lawyers either.  Funny thing about that......Sure worked for the lawyers.

HoofHearted's picture

I would love to see MDB spin this one. He probably has some good evil genius way of making Corzine look like a preacher, Obama look like Barney Fife, and Biden...well, nobody can do anything for Biden, but I'd love to see MDB try.

Ghordius's picture

perhaps because Corzine has been framed? Some thoughts:

- MF Global was "too EUR-friendly" in their bets and "failed", or perhaps was "brought to failure". So that JPM could scavenge the juicy parts out of it's carcass, as pointed out in this excellent article.

- The other side of the bets, i.e. the very "EUR-unfriendly" "hedge book" is at JPM, and it is also leaking because it was too "EUR-unfriendly".

- This inbalance could also be explained by the many Britons in JPM's leadership, for example our beloved Blythe Masters, who were all brought up in the utter unshakable belief that the EUR has to die, somehow. But the frequency and tenor of articles in the British and Murdoch press against the EUR-and-all-that-is-attached-to-it can also be explained by a concerted action for USD-complex strenghtening, which at this point was quite necessary.

- The SNB card might have been misread in it's consequences: the money fleeing EUR cash accounts in the southern EZ is flowing more than expected into CHF (in eurozone banks, though), regardless, which then forced the SNB to diversify even into GBP and other currencies, too.

All in all, my presumption* is that the JP Morgan crew have the following enemies in their book that they want to bring down, in this order of importance: EUR, Silver, Greek Banks, Gold, Spanish Banks, Yen, Belgian Banks, Credit Suisse, Danish Banks, GBP, Portuguese Banks, Deutsche Bank, Spanish Bonds, Italian Bonds and Copper. Not exactly the "EUR Complex", more something roughly resembling an non-or-anti-"USD Complex".

The interesting side in taking the other side of a bet against JP Morgan is that you don't know if the vehicle of your bet is going to be torpedeod or not. Sorry, I mean corzined, a word that might gain many more meanings, in the next future.


(*) very happy to be corrected me as my data is quite spotty

Seize Mars's picture

Ghordius: Fascinating. This construct would seem to fit with a larger picture. Although I'm not sure about the order of importance in your hit list, whatever it is I'm sure it's close.

The Anglo-American alliance versus continental Europe has always been a real dynamic. This was nicely described ( in detail) in Engdahl's book "A Century of War: Anglo-American Oil Politics and the New World Order." What an eye-opener that one is.

Still, even if MF Global was intentional, why put Corzine in the middle of it? Why bother? Why not set up some patsy who can absorb media time, and go to jail, like that Gupta guy?

cranky-old-geezer's picture



All in all, my presumption* is that the JP Morgan crew have the following enemies in their book that they want to bring down ...

Good analysis, makes sense.  Keep USD strong by torpedoing all the competition

...instead of just doing what would keep USD strong without torpedoing the competition, which of course won't be done because it would stop their looting scheme, which USD is the vehicle for.