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Previewing Today's MF Global Hearing

Today at 2 PM, the House Financial Services Committee will hold its third hearing (and the fifth overall) on the ever more confounding topic of MF Global, its bankruptcy, and its vaporized client funds, which amount to about $1.6 billion at last check. And while Jon Corzine will not be there, virtually everyone else from the firm who can promise that said vaporitzation of funds was merely a softward glitch and not the fault of anyone in particular, will be present, from the General Counsel, to the CFO, to the Deputy General Counsel of JPMorgan, all the way to Edith O'Brien, assistant treasurer of MF Global, who is expected to plead the Fifth. One wonders why if there is nothing to hide, but that is the topic of another discussion. And as exposed last week by the WSJ, this hearing will be particularly interesting as now it has been made clear that Corzine specifically gave the order to transfer funds to JPM's account. As NJ.com summarizes: "Per JC’s direct instructions." This line, contained in an email that an MF Global finance official sent to explain a $200 million transfer to JPMorgan Chase from an MF Global account containing customer funds, will be a focal point of a congressional hearing today into the futures firm’s collapse. The email, disclosed in a congressional memo circulated Friday, has raised questions about whether the former governor and CEO of MF Global knew customer money was being used to plug holes in the firm’s finances as it plunged into bankruptcy during the last week of October. As much as $1.6 billion of client funds has gone missing, according to a trustee liquidating the futures firm." Wrong - not "gone missing": it vaporized.
Furthermore, as JPM's Deputy General Counsel will testify today, "on the morning of Friday, October 28, as a result of the heightened level of attention to MF Global transfers and balances dictated by the debit alert, J.P. Morgan determined that there were overdrafts in certain of the foreign-exchange clearing accounts maintained by MF Global’s U.K.-based affiliates. We promptly advised the Chairman and CEO of MF Global Holdings Ltd., Jon Corzine, and others at MF Global of these overdrafts and were assured that any overdraft would be covered....when this was raised with Mr. Corzine on Friday morning, he readily agreed that it was important for MF Global to cover the overdrafts, and he assured J.P. Morgan executives that MF Global had ample funds to cover the overdrafts and that they would be covered promptly" The problem is that as is now known it was covered with client money.
So bring your popcorn - the contradictions in Corzine's sworn testimony are now so blatant, even corrupt congressional critters, potentially those tied in some way to Corzine's fundraising efforts, will be forced to ask relevant and pertinent questions this time around. Showtime is 2pm and will have a live webcast.
Full cast of characters:
Hearing entitled “The Collapse of MF Global: Part 3”
Wednesday, March 28, 2012 2:00 PM in 2128 Rayburn HOB
Oversight and Investigations
WITNESS LIST
Panel I
- Ms. Laurie Ferber, General Counsel, MF Global Holdings Ltd.
- Mr. Henri Steenkamp, Chief Financial Officer, MF Global Holdings Ltd.
- Ms. Christine Serwinski, Chief Financial Officer for North America, MF Global Inc.
- Ms. Edith O’Brien, Assistant Treasurer, MF Global Inc. (no written statement submitted)
Panel II
- Ms. Diane M. Genova, Deputy General Counsel, JPMorgan Chase & Co.
- Mr. Daniel J. Roth, President and Chief Executive Officer, National Futures Association
- Ms. Susan M. Cosper, Technical Director, Chairman, Emerging Issues Task Force, Financial Accounting Standards Board
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Get out the KY Corzine!!
That's "Honorable" Corzine to you!
MOTHERFUCKING GLOBAL BITCHEZ
I just downloaded iHangman for my iPhone4. How do iHack the iApp and place iCorzine on the iGallows?
The Financial Services Committee is chaired by Congressman Spencer Bachus..
Committie Members: ie, other dirtbags.. save 1.
Spencer Bachus, AL, Chairman
Jeb Hensarling, TX, Vice Chairman
Peter T. King, NY
Edward R. Royce, CA
Frank D. Lucas, OK
Ron Paul, TX
Donald A. Manzullo, IL
Walter B. Jones, NC
Judy Biggert, IL
Gary G. Miller, CA
Shelley Moore Capito, WV
Scott Garrett, NJ
Randy Neugebauer, TX
Patrick T. McHenry, NC
John Campbell, CA
Michele Bachmann, MN
Thaddeus G. McCotter, MI
Kevin McCarthy,CA
Stevan Pearce, NM
Bill Posey, FL
Michael G. Fitzpatrick, PA
Lynn A. Westmoreland, GA
Blaine Luetkemeyer, MO
Bill Huizenga, MI
Sean P. Duffy, WI
Nan A. S. Hayworth, NY
James B. Renacci, OH
Robert Hurt, VA
Robert J. Dold, IL
David Schweikert, AZ
Michael G. Grimm, NY
Francisco "Quico" Canseco, TX
Steve Stivers, OH
Stephen Lee Fincher, TN Barney Frank, MA, Ranking Member
Maxine Waters, CA
Carolyn B. Maloney, NY
Luis V. Gutierrez, IL
Nydia M. Velázquez, NY
Melvin L. Watt, NC
Gary L. Ackerman, NY
Brad Sherman, CA
Gregory W. Meeks, NY
Michael E. Capuano, MA
Rubén Hinojosa, TX
Wm. Lacy Clay, MO
Carolyn McCarthy, NY
Joe Baca, CA
Stephen F. Lynch, MA
Brad Miller, NC
David Scott, GA
Al Green, TX
Emanuel Cleaver, MO
Gwen Moore, WI
Keith Ellison, MN
Ed Perlmutter, CO
Joe Donnelly, IN
André Carson, IN
James A. Himes, CT
Gary C. Peters, MI
John C. Carney, Jr., DE
Bernie Made-off needs a roomie! Pillow fight Jon!
Jonny Boy Made-off with the money.
I think you mean "Dimon in the rough" made off with the money...
Dimon: Um, John........seems to me your betting all on black just isn't working out.
Honorable Corzine: I just need a lil' more time!
Dimon: FUCK YOU, PAY ME!!!
Ace: What do you know?
Nathan: I am still in your employ.
Ace: And in theirs. Did you set a salary figure with them?
Nathan: No.
Ace: Probably the right move, makes him look like an amateur.
Gus: Nice imitation, kid.
Bernie has married his current roomie and now farts as a baritone.
It's sure nice to know MF Global Execs are still getting their boneruses. Do bank robbers always get a bonus?
Ricky: Fuck this court. Fuck Jim Lahey. Fuck Randy. Fuck those two idiot cops right there. Fuck suit dummies; as a matter of fact fuck legal aid. Fuck Danny and Terry's Buffalo Chicken Wings. Fuck all the old wood in here. Fuck the moon, fuck corn on the cob, fuck squirrels. Fuck me, fuck you, fuck everything!
Finer words have never been said.
It must be seen to be truly enjoyed.
http://youtu.be/E7XxRaRdR38
Full scene
http://youtu.be/RQQCoWJ_bM8
are you a professional writer?
I'm sure there will be grave expressions of concern expressed, along with some "tough questions" and calls for "further investigation" and some "blue-ribbon panels" with more "forensic accounting". Hand wringing will ensue, and the NYT will publish a searching "analysis" wondering how "the regulators" missed this one, with calls for more "supervision" and "regulations" to ensure "fairness", combined with speculation about how to bring "social justice" to the "wild west" of Wall Street, and ruminations on how a "visionary" and "respected authority" like Jon Corzine could have "fallen asleep at the switch" and "taken his eye off the ball" with MF Global merely being an "unfortunate symptom" of a "system gone wrong". Lip service will be paid to the "speculators" who were "seduced by their own greed" and "missed the warning signs" and who will now need to take "extra precautions" with reflections on how "commodities speculation" is a "dangerous game" and "bad things can happen" to people who thrive on the "windfall profits" and the danger of "skating close to the edge" in an industry where "every move can be your last".
Yawn.
Right, and if that narrative doesn't fit we can always go with 'the few bad apples' template.
Buckaroo you made my day. Give me the bank account number (ok just kidding)
"merely a softward glitch"
Is that like magical money protecting wards combined with software or is it like pay it forward where the software actually forwards shit to the future?
Softwad
Obama is a genius:
http://annoyanidiot.blogspot.com/
Well - there is a lot being made about the $200 million extorted by financial terrorist Jamie Dimon.
But.........................that leaves approximately $1.4 billion in embezzled segregated funds unaccounted for. Who's looking into that? And how long was that going on?
My name is Christine Serwinski. (CFO of MF Global)
I was on vacation the week of Oct 25-31
Nonetheless, late in the day on Thursday I decided to come back to Chicago a day early, on Sunday rather than Monday.
Among other things, I had by then learned that there were serious efforts underway to sell all or a substantial portion of MF Global Inc.’s business. Earlier on Thursday, I also learned that the segregation report for Wednesday showed a substantial deficit in what was called the “firm invested in excess segregated and secured funds.”
Senator: Ms. Serwinski, so a billion dollars is missing, the company all of a sudden is trying to sell itself and you decided to come back from vacation on Sunday Oct. 30 instead of Monday the 31st? Do I have that correct.
Serwinsiki: As I said Senator I was reassured that everything was under control, and at no time did anyone ever suggest that I should return to the office.
Senator: Who was CFO of MF Global at that time?
Serwinski: I was
Senator: Well, I hope you had a chance to relax on your vacation, thank-you for your testimony today Ms. Serwinski.
"will be forced to ask relevant and pertinent questions this time around. Showtime is 2pm and will have a live webcast."
I'll believe it when I see it.
nothing will change ... in fact it's possible Eric Holder will step in to insure that nothing will happen as he has done since the beginning of this failed administration.
What ever became of Carl Levin's referral of the Squid "toxic crap" case . . .
Agreed, Dr. E
Justice will not be served....yet (I am holding out hope that it will at some future point in time)
I predict more than one 5th Amendment protection exercised today. (O'Brien being the obvious one)
Stealing is all the Rage nowadays....(that is when your not busy eating your iPad).
JohnKozac
"Stealing is all the Rage nowadays"
Dude Google ABSCAM. That taught the very important lesson about buying off all parties concerned so the theft never gets noticed again. You have to be a real stupid motherfucker these days to get caught.
Seriously, these congressional idiots need to start acting ethical and demand some justice for the customers.
Ha ha ha ha
teflon johnny....he has already been pardoned
Corzine: "I'm sorry. It was an oversight."
Committee: "Good enough for us. Meeting adjourned. What's for lunch?"
http://www.myspace.com/tom_heneghan_intel/blog
What followed was the largest 24-hour crime spree aka money laundry in financial history.
Forty-eight hours after JP Morgan's line of credit was rejected (their electronic check bounced creating an overdraft), a second larger margin call was issued to JP Morgan, which set off the following change of events:
Immediately financial terrorist Jamie Dimon, CEO of JP Morgan phoned Federal Reserve Chairman Bernard Bernanke, U.S. Treasury Secretary Timothy Geithner and CFTC Chairman Gary Gensler and discussed his predicament.
Within an hour the CME Group re-issued the second margin call singling out only MF Global and removing JP Morgan from its liability.
Fifteen minutes later Jamie Dimon called MF Global CEO Jon Corzine threatening his life and demanding that MF Global meet the $200 million margin call that was originally issued for JP Morgan.
One hour later the crooked ISDA ruled the MF Global trades to be null and void, which then allowed JP Morgan and Jamie Dimon to short the MF Global stock and then, with the approval of the Federal Reserve Bank of New York laundered the proceeds into the London LIFFE Exchange, and issued new naked derivatives which would be used in the latest Greek-Euro bailout ponzi scheme.
who uses myspace anymore ?
Musicians without talent.
Mistakes were made
Shit happens
Money vaporizes
...
What's that spell?
Questioner: Honorable Mr. Corzine can you tell me about this memo that says you authorized thetransfer of 200 million dollars?
The "Honorable" Mr. Corzine: According to my best recollection I don't remember.
The Powers that be better "off" the, AHEM, Honorable Mr. Corzine! Me thinks there are more piles of dogshit laying around. Who else is in on the takedown of MF. Enquiring minds want to know.
Posted by Cardiff Garcia on Mar 28 15:47.
A big thanks to the FT’s regulatory correspondent Kara Scannell for passing along the May 2011 presentation by consultancy Promontory to the MF Global board’s audit and risk committee.
As Kara and Tom Braithwaite write in their piece this morning, the presentation concluded (at T -5 months to bankruptcy) that MF Global had “robust enterprise-wide risk management”. The report was commissioned as part the broker-dealer’s settlement with the CFTC after the wheat futures trading scandal in 2009.
Click below to view in its pdf’d glory…
http://av.r.ftdata.co.uk/files/2012/03/12-00047.pdf
Kara obtained the docs via a FOIA request, and there was a hilarious bit that was redacted by the CFTC on the slide labelled “Conclusions”…
Gee, wonder who could it possibly be.
Just for interest sake. Is there someone with Adobe Creative Suit who can take out the redacted part in above Adobe reader file and repost it??
Stealing and getting away with it is the new status symbol of the super rich.
Can't touch this.... Hammer time.. Corzine looks good in parachute pants..
mr_T
"Corzine looks good in parachute pants"
What are you Japanese? First Reno's wattle now Corzines retro attire.
Are we going to do shots during the hearing? One shot for the word "overdraft"? Two shots for the word "segregated"? Ten shots for the words "I am guilty"?
Three shots if he reiterates.. "But.. I told you it Vaporized." I'm shocked!
I but I can summarize it before it even happens.
"I didn't know that the company was stealing customer funds."
Those must be Nomex pants he is weaing today, just in case he goes for the pant's on fire defense.
Hopefully it will be on C-SPAN.
Teflon Jon
Barry Soetoro threw his own grandma under the bus. Don Calzon will get the same treatment.
Everyone will have memory lapses and/or lie. Next question.....
Ummm...why is Corzine NOT going to be there? He was the CEO correct? WTF..?
I would like to know how much he bundled or contributed to those who are questioning him. Or his former firm gave
Has anyone heard a word from trustee Kobak since his coverup of butt-buddy Corzine was blown?
And, meanwhile:
WASHINGTON (Reuters) - MF Global's North America chief financial officer plans to tell lawmakers on Wednesday that she desperately sought fund transfers to cover the customer account shortfall in the final hours before the firm's collapse, but that some banks would not execute them. In prepared testimony, Christine Serwinski also said she was convinced at first that the roughly $1 billion deficit in customer funds had to be an accounting error and only learned on the morning of the bankruptcy that the shortfall was real.
why can't she just come out and say it; "My former boss squandered all the customer accounts on his buddies. I then made some phone calls to cover my ass. I didn't say "the office I'm currently working in is going up for rent in a month, but give me money anyway," but they knew it. Wtf do you think I could do?"
People piss on their former bosses all the time, Christine, get with it.
speaking of asses
i'd grab your avatar's in a heartbeat
She 's already been paid. Basic Criminal Banking 101. Get with the program. </snarl
This will be the biggest nobrainer of the millenium! Everybody knows it and all are happy. G. Gensler keeps his job for the next 200 years, gets a promotion and a bonus. What else are we looking for?
unfortunately, my counsel has advised me to duck, and cover
therefore, i shall spend the next 3 months answering each & every 'question under oath' w/ the same "constitutional" answer!
some of you young ladies remind me of...
my classmate's sister makes $67/hour on the laptop. She has been without a job for 6 months but last month her pay was $20212 just working on the laptop for a few hours. Read more on this web site ..... http://lazycash9.com
http://www.youtube.com/watch?v=yxE_oQBwrdU