Must Read: Presenting The MF Global Black Box: A Minute By Minute Breakdown Of The Doomed Broker's Last Week On Earth

Tyler Durden's picture

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Cheesy Bastard's picture

Corzine was told directly by Soros that his ass would be covered.  Soros doesn't care, he won't have to do the time.

Everybodys All American's picture

What this tells me is that there are plenty of other broker dealers who likely have the same repo issues and are only a downgrade away from the same scenario unfolding. Having said that I hope I'm wrong.

nmewn's picture
  • October 26, 2011

  • 7:45 p.m.: Taylor emails Ferber regarding CME helping "to ensure a good outcome for MF and your customers. You and your clients are important to us, and the clients' continued protection is paramount."

    Middle managers catch wind of it and now begin to liquidate as well, before calling their friends and distant family...lol.

    Jumbotron's picture

    That's right....save your own fucking skin before letting your peeps on the friends and family plan that .....oops...due to cell phone congestion you couldn't quite make that phone call in time.

    Memo to Dante.....you need to write up a 10th Circle of Hell for these bastards,

    nmewn's picture

    Note the conjectured "shadow timeline" I presented...the big dogs had already cashed out at the first wiff.

    What I really want is an Italian implosion, then the vulture who picked up these "assets" (thats a whole nuther discussion) for around ninety four cents on the dollar gets a chicken bone stuck in his throat and croaks it up for fiddy cents.

    I think we all know who I'm talkin about ;-)

    Glass Steagall's picture

    I suspect that the implosion of MF Global was engineered as a way to undermine world confidence in the US dollar and start a run on a global scale – thereby forcing what is no doubt the real agenda: WW3. We have no other card to play and without an engineered financial collapse, epic war would be rejected outright and squashed by the likes of China and Russia. With a financial collapse, it’s every man for himself and the bullets can fly without much finger pointing and self- preservation the only protocol.

    Bringin It's picture

    Default was engineered to avoid futures default IMO.

    Cone of Uncertainty's picture

    • Approx. 1 a.m. —2 a.m.: CME learns the deficiency is real: Serwinski and O'Brien call Procajlo into Serwinski's office and tell him there is an actual shortfall; about $700M was moved to the broker-dealer side of the business to meet liquidity issues in a series of transactions on Thursday, Friday, and possibly Wednesday. Additionally, Procajlo is told there was a loan of $175M of segregated funds to MF UK.

    THIS  ^

    jcaz's picture

    Go ahead and make them whole, Jon- you got that sort of spare cash, right?

    The phrase "I take full responsibility" should begin with his checkbook on the table.....

    Jumbotron's picture

    Hello Mr. Corzine's arm....

    I'd like you to meet Mr Syringe Full of Potassium Chloride

    IndicaTive's picture

  • 11 a.m.: Taylor, Donohue, and Duffy seek and obtain Jon Corzine's phone number. They do not recall speaking with Corzine.
  • Long TracFone

    ?And...Procaljo sure does "indicate" well.

    Waterfallsparkles's picture

    Keep thinking about it is a Wonerfull Life where the absent minded Uncle left an $8,000. deposit in a newspaper on Potters desk.

    Poter never admited having the deposit.  And Baileys S&L almost went down.

    Somehow I think it all leads to JPM.  I may be wrong but just maybe they should check JPM books to see if there was a large "deposit" of a few Billion on the day the funds went missing.  With all of those Millions and Billions flying around, with the liquidations and customer withdraws (most of which were reversed) who really can say?

    Jumbotron's picture

    +1000 Jingling Bells signifying angels getting their wings.

    That's right Zuzu, that's right.

    SillySalesmanQuestion's picture

    So bye, bye MuthaFuckin Global Pie

    Corzine drove to Chase, but Chase said he was dry

    Jamie and the boys were drinking whiskey in Rye

    Singin' this will be the day that you die

    This will be the day that you die...

     

    Strut's picture

    Do a little research in CMX registered silver as this went down. I think it was to the tune of ~1.3M oz! Word is that it was done to prevent a default of COMEX.

    JR's picture

    And with all these Millions and Billions flying around in this paper money tyranny with its immoral computer entries to only God knows where, it has become so easy to bandy a billion or a trillion about…but to really think about it for those who work for the $1.2 billion, it’s 100 million, 200 million, 300 million, 400 million, 500 million, 600 million, 700 million, 800 million, 900 million, 1000 million 1100 million, 1200 m i l l I o n dollars! Twelve hundred million dollars of purchasing power!

    bill40's picture

    Normally I would argue that such things could not possibley happen, it simply wouldn't be allowed.

     

    But it just did.

     

    tony bonn's picture

    corzine is a total bankster tool who has been assigned to various tasks by the oligarchs....mf's destruction was a massive hit job...

    Jumbotron's picture

    Let's see....

    Corzine was at one time the CEO of Goldman Sachs

    CEO of MF Global

    Governor AND Senator of one of the most corrupt states ever known..,. New Jersey.

     

    Nah.....he's not a tool.....he's not that connected.....not a surprise he doesn't know where the money went.

    Infinite QE's picture

    Bingo. They needed a place to park a lot of euro debt, game it as long as they could, then implode it.

    Papasmurf's picture

    1) defatult metals exchange while not admitting the metals vault is empty

    2) crash the price of gold & silver

    3) steal $1.2B, transfer wealth to Soros.

     

    Triple words score, scrabble, x2 if you start on the correct square on the board.

    divide_by_zero's picture

    Plus they transferred some bonds "still on books" to UK just before BK, who else but Soros waiting to buy at fire-sale prices

    http://online.wsj.com/article/SB10001424052970204319004577086652040716704.html

     

    StychoKiller's picture

    That word would be:  Swindle.  (Figuring the score, left as an exercise for the reader!)

    MsCreant's picture

    If you look at the other documents Tylere referenced, I think it is worse than that. Way worse.

    If we look deep enough, I think there is a smoking gun paper trail here to how the Central Banking system is operating in the market to prop shit up. This one got "seen" and now the cost is to make this one go away by killing it and letting it go bankrupt.

    I am no expert, but that is what I put together out of all this.

    THEY CAN DO ANYTHING, create funds, close them down, make up purposes and rules, THEY HAVE ABSOLUTE POWER, ABSOLUTELY.

    They could have created a "Fairy Fund" to save this shit if they wanted to.

    Maiden Lane. Come on, DON'T YOU SEE? We are being choked with jokes and scams. Laughed at as they rape us all. AND THEY ARE GETTING AWAY WITH IT!!!!!!

    Fuck me.

    hedgeless_horseman's picture

     

     

    THEY HAVE ABSOLUTE POWER, ABSOLUTELY.

    Come on, don't you think you are being a little hysterical?  

    It's not like they can just create money out of thin air.  

    Oh...ummm...scratch that.

    nmewn's picture

    Yes, it is.

    Still waiting for the jingoist proclamation to spend our savings "for the good of the country" though.

    Oh, wait ;-)

    Mr Lennon Hendrix's picture

    It's your fucking duty!

    Now sit down, shut up, and eat your peas.

    Mr Lennon Hendrix's picture

    I'll tell you what, Ms, the Matrix is real.  Real as it gets.  More real than real life, for many anyway.  Living pop and bubble gum dreams, we lie in are graves, while the dance music plays above our heads. 

    Laughing to the bank they are, and what to make of it.  So, to the bank; the bank; like when one stands on a side of the water.  And what happens on the other side?  Nirvana.

    So these bankster fuckers, they have played a game.  Their game is to pillage society, and thus to rape our culture, so they can make it to their dream of...welll, I won't pretend to understand the mind of a sociopath, but they have sinister dreams, and they think they can achieve them with this matrix.

    This, the Fiat Ponzi Matrix

    Calmyourself's picture

    The rulebook is gone these financial demons will do anything and I mean anything to keep this ponzi going.  There has been massive preparation for the eventual collapse and the most recent NDAA provision is simply the door closing behind us.  Buckle up Dorothy, Kansas is going Bye-bye..

    +1

    maxw3st's picture

    I'm going to assume that "Ouch" referred to on the 30th Oct is Guch from CME mentioned previously in the timeline. If not, who is "Ouch", aside from a poor sap that had the misfortune of having an account with MFG?

    Scary thing is, there's probably not a bank in the system that isn't playing the same game with their customer account funds. It's like borrowing to gamble. Sooner or later it's going to bite you in the ass.

     

    MsCreant's picture

    Shouldn't the term be embezzlement? 

    Papasmurf's picture

    It's only embezzlement if you do it.  If they do it, it's an honest mistake.

    Mr Lennon Hendrix's picture

    As the Senator whoeverthefuck kept saying today, "It appears what was done was legal."  Although what Mother Fucking Global did was not legal, that which he was referring to, the Fiat Ponz, has certain legalities that justifies stealing. 

    Yes, that's right, stealing.  Robbing.  Pillaging.  The system makes it easy for certain practices to happen.  Such examples of these practices start with fractional reserve lending, move into rehypothecation, and run down the list of loanership means of transacting business.

    You are not your job, you're not how much money you have in the bank.  You are not the car you drive.  You're not the contents of your wallet.  You are not your fucking khakis.

    Waterfallsparkles's picture

    Maybe we should look at who had the most Credit Default Swaps on MF Golbal failing.  That may be where the answer lies.

    PulauHantu29's picture

    "You got the wrong guy."

    "I've been framed."

    "I  have no idea...."

    "I never gave permission....."

    Anyone else (i.e., the average person) who gives these lines in this situation would be in a 6x6 to help thier memory.

     

    Papasmurf's picture

    These are not "loans made from customer accounts".  These are outright thefts from customer accounts.

    Clearly_Irrational's picture

    How can anyone think that 37x leverage is smart or rational?  At that rate if a moth sneezes in asia your NAV fluctuates 50%.

    lizzy36's picture

    Well don't look at the EU banks which are generally leveraged at about 33x.

    Neither smart nor rational and likely insolvent.

    Cheesy Bastard's picture

    And someone just threw some pepper at the moth.

    Clearly_Irrational's picture

    How can anyone think that 37x leverage is smart or rational?  At that rate if a moth sneezes in asia your NAV fluctuates 50%.

    Miss Expectations's picture

    So, just how do things like sweep accounts work?  Is it possible that programming was in place so that the accounts were being swept all the time?  At the point were everyone was looking to reconcile, the sweep was turned off and the funds were not returned (kept by JPM).

    Arkadaba's picture

    Funny how JPM kept getting referenced but no accusations.

     

    jelyfish's picture

    Tyler is referring to tri-party repos (JPM) in other posts. It looks like what JPM did was legal. And it is starting to look like CME might be holding the litigation bag.

    Waterfallsparkles's picture

    Another thought is that People that requested their money thru a funds transfeer Wire, that the Money was put into the Customers outside Checking Account but was then withdrawn thru a reverse wire.

    Is it possible that all of the Funds wired to Customers Personal Checking Accounts and then reversed after the reversal went into the main MF Global account and were not re segregated into their personal accounts with MF Global.

    If that is the case it is possible for JPM to come in and take what they though was MF global funds for their Margin Call over night which would then cause a shortage in Customer accounts as there was not time to re segregate the money back to the Customer.  As the Money had been withdrawn overnight before the start of the Business day. Still think JPM played a major roll in the missing money.

    Waterfallsparkles's picture

    So many people requested their Money from MF Global.  Some people had the money wired to their Bank account and some people were issued Checks for the Money in their account before the Bankruptcy.

    The funds that were wired were taken out of Customers Accounts and wired them to the Customers outside Bank account, but then the wires were reversed.  The people that were given checks, when the checks were deposited bounced or if they cleared the money for the checks was reversed.

    What happened to that Money?  The Books would clearly show the Money withdrawn from the Customer's accounts and authorized for return to the Customer.  Yet, when the withdraws were reversed, where did that Money go?  Who, authorized the reversal of that Money wired into Customers outside Banks Accounts or thru Checks to Customers?

    How much Money did Customers request to withdraw that was reversed?  Is that where the missing Money is?  Where did the Money that was reversed go?  Did it go back into MF Globals Bank account or somewhere else?

    lemosbrasil's picture

    In dec-2007, there wasnt a santa claus rally !

    From 12-31-2007 until 01-22-2008, DOW JONES, fell 12% !

     

    see here: http://pracompraroupravender.blogspot.com/2011/12/em-dez-2007-nao-houve-rally-de-natal-e.html

    WTF2's picture

    Did you see Corzine sweating today?  "slippery when dry" was what senator said.