Watch Jon Corzine's Follow Up Testimony On The MF Global Bankruptcy, Accompanied By MF's CFO And COO

Tyler Durden's picture

Update: the three MF Global stoog... pardon, former executives, are now testifying

Even though he has had several days in which to "review his notes", the follow up testimony by former MF Global CEO Jon Corzine to the Senate Agriculture Committee starting momentarily will be replete with "I don't recalls" and "to the best of my knowledge" and will be largely devoid of all content, suffice to say it was not his intention to break the main law of broker dealers- no commingling. It will be even worse because today he will be joined by MF global's CFO and COO as well, all of whom will be completely clueless once again, and needless to say, shocked, SHOCKED, that they stole billions from their clients. Watch the full webcast below.

From the Senate Agri Committee

On October 31, 2011, MF Global Holdings Ltd. declared bankruptcy – the eighth largest bankruptcy in U.S. history. Since then, federal officials have been unable to find a significant amount of the firm’s customer’s money. It is currently estimated that up to $1.2 billion in customer funds is missing. The Senate Committee on Agriculture, Nutrition and Forestry has jurisdiction over the sort of commodity trading that MF Global was engaged in, and the hearing on December 13 will be a continuation of the Committee’s investigation into the firm’s bankruptcy.


Panel I

Mr. Roger Hupfer
    Grain Elevator Operator
    Freeland Bean & Grain, Inc.
    Freeland , Michigan
Mr. Jeffrey Hainline
    Advanced Trading, Inc.
    Bloomington , IL

Mr. Dean Tofteland
    Luverne , MN

Mr. C.J. Blew
    Farm/Rancher, Chairman of the Board, Board Director
    Mid Kansas Cooperative Association, Board of CHS, Inc.
    Hutchison , KS

Panel II

Hon. Jon S. Corzine
    Former Chairman and Chief Executive Officer
    MF Global Holdings Ltd.
    New York , NY

Mr. Henri Steenkamp
    Chief Financial Officer
    MF Global Holdings Ltd.
    New York , NY

Mr. Bradley Abelow
    President and Chief Operating Officer
    MF Global Holdings Ltd.
    New York , NY

Panel III

Mr. Terrence Duffy
    Executive Chairman
    CME Group
    Chicago , IL

Mr. James W. Giddens
    Securities Investment Protection Act liquidation of MF Global, Inc.
    New York , NY

Hon. Jill Sommrs
    Commodity Futures Trading Commission
    Washington , DC

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GeneMarchbanks's picture

He's confident the money will be recovered. Confident I tells you...

FEDbuster's picture

Ann Barnhardt interviewed by Jim Paplova on 11/30/2011, take the time to listen to the woman who shut down her firm over this theft.  I wish Ann would have been invited to speak today!


Plus, please change the Hon. to Don Jon Corzine, since he ruled a criminal organization.

kralizec's picture

Damn right!  Corzine, Steenkamp & Abelow should be testifying in chains!!!

The Big Ching-aso's picture



I wouldn't believe these guys to tell the truth about their own mother if her life depended on it.

Manthong's picture

"replete with "I don't recalls" and "to the best of my knowledge" and will be largely devoid of all content"

Has he secured the re-use permissions from Hillary?

flacon's picture

Let's hope Corzine bathed himself and combed his facial hair before coming on TV, unlike last time. I swear I could smell his sweat coming through my monitor. 

nope-1004's picture



These egomaniacs think they're above all rule of law.  And society keeps feeding them the bullshit by putting "honorable" on his placard.

Fucking farce.  He belongs in jail - period.  If he doesn't "recall" how things were done, then he's admitting incompetence.

So now he's a fraud AND a failure.  Nice life, mullet boy.

EscapeKey's picture

If he doesn't recall, according to Sarbanes-Oxley, then he's criminally negligent. "Not knowing" is a felony.

Obviously, his lawyers have advised him on going this route regardless, so no doubt we'll have new wording added that NEXT TIME IS FOR REAL.

MachoMan's picture

Sometimes you are advised to take the choice that gives you the least jail time...

Comay Mierda's picture

these fucking pieces of shit just said they dont know what REHYPOTHECATION means

look at their fucking 10-k with all their signatures

" In addition, we have customer collateral that is not included on our balance sheet but can be re-hypothecatedby us, and non-segregated customer payables, both of which may be considered (depending, among other things, on where the collateral is located and the regulatory rules applicable to the collateral) an additional layer of liquidity. Non-segregated customer cash in some jurisdictions is also available for other client liquidity demands which helps mitigate the use of our own cash. We also rely on uncommitted lines of credit from multiple sources to fund our day-to-day execution and clearing operations. "

put these fucking assholes in the prison shower with Sandusky

MachoMan's picture

He'll get time...  but he'll get less time than all his other alternatives...  My only question is what did he have to do to get kicked out of the club...  because sharks don't take one for the team...

YBNguy's picture

Taking bets now on when he fakes his own death...

yabyum's picture

And off to Vesco Island for cocktails with Ken Lay.

FEDbuster's picture

Screw that.  Jon Corzine should "Budd Dwyer" himself during today's hearing.

Vergeltung's picture

"nice shot man, yeah, good shot man......"

pelican's picture

Nah, he is going to flee to the middle east.

SilverRhino's picture

Since then, federal officials have been unable to find a significant amount of the firm’s customer’s money. It is currently estimated that up to $1.2 billion in customer funds is missing.

Someone tell me just how the hell is this possible when all bank records of $$ transfers are kept triply backed up and impossible to refute in court?   Also where the FUCK is even the threat of a RICO indictment? 

If banks can clawback employee bonuses, block my debit card access based on 'suspicious activity'  and reverse bank wires at will (CC disputes come to mind), WHY has this money NOT been reversed or recovered???? 

NO company moves a BILLION dollars without the CEO being involved in the transfer of that $$$  

willien1derland's picture

+1000 Silver Rhino...I am praying for a Freudian Slip or some damn CONGRESSPERSON to ask Corzine about another financial debacle he was closely involved in - does the acronym LTCM mean anything..LONG TERM CAPITAL MARKETS...ohh yes, Mr. Corzine isn't it true that you were involved with LTCM....wasn't there a SMALL issue there AS WELL - Corzine is a CRIMINAL - Criminal recidivism is highly correlated with psychopathy & although I know there are quite a few competing to be the poster child for this condition - I submit that Corzine should be 'ELECTED' as the posterchild of Criminal recidivism!

scatterbrains's picture

 Corzine said, "last thing we should be doing is trying to play the blame game"   I'm starting to realize these banksters are getting ready to blame hackers or Iranians and everyone is about tol walk. Jon may even get his treasurer title yet.

It's going to turn out that rogue OWS hackers screwed with the books and stole the money.

Hugh G Rection's picture

It's funny how often they "dont recall", or don't want to "speculate" when they're questioned for wrong doing.

Heard lots of that in the Pat Tillman murder coverup.

Jonbutterfly's picture

Listen to this radio report with Gerald Celente:                                

smlbizman's picture

how the fuck am i suppose to believe that this is the first time thieves have ripped off people in such a unique way that the fuckin shit bag congress of the good ole u s fucking a has to be involved...shouldn't by this point we have a policy in place, like a judicial system, that could handle this...what a bunch of fuckin bullshit for the stupid fuckin sheep in this wouldnt fuckin surprise me one day if they dont elect a guy that has video of himself and a crack whore in a flea bag hotel room....  

FrankDrakman's picture

Can you say "Marion Barry"? I knew you could!

-- Mr. Robber's Neighbourhood

The Big Ching-aso's picture



I must have a serial junker on my ass.    I guess I should be honored.

smlbizman's picture

when did stabinow become ceaser romero as the joker???

wisefool's picture

I was thinking the same thing with ledgers joker starting the testimony "Here We go". 

Hugh G Rection's picture

Abelow looks like a German propaganda poster from the 30's. 

Can't blame the zionists for stealing money from us lowly goyim.... it's their right as "God's chosen people."


-sarc, off

LeonardoFibonacci's picture

Treasonist cowards Corzine, Steenkamp & Abelow.

Erect the gallows, lads.  Once a century or so, it becomes obvious its time to use them again

LeonardoFibonacci's picture

market crashes after election;
everyone's retirement account tanks;
hysteria whipped up by msm prevails;
lame-duck congress passes qe.....1.....100;
lame-duck implements massive overhaul (aka confiscates retirement accounts);
banksters buy sell-off on the cheap;
hyperinflation kicks in;
i snack on my dried/canned food as i sit on my sofa with my gun and count my gold and watch riots on satellite tv (since msm will not be covering them).

slewie the pi-rat's picture

the transcript also = time well spent private/12.11/barnhardt.html

somebody should read this interview into the congressionalRecord, since they may not wish to call someone who would raise questions about the record of lies the agCommittee appears to be pursuing

according to annBarnhardt, corzine must have known what has doing, every step of the way, and the crimex changed its procedures over the mess, not to mention the SEC and the CFTC

she laments the loss of the rule of law in the US and calls out both corzine and prez0 for v.hi-level cronyism---almost tyleresque in her damnation of the crooks and their lawyers and political enablers who just make it up as they go along


FEDbuster's picture

She said "from now on one should invest in real assets that you can stand in front of and defend with an AR-15".  Get out of ANY paper assets while you still can.

john39's picture

yeah but, she also thinks mulsims are taking over the world...  kinda at odds with the reality of who runs the wall street theft machine and U.S. government.

FEDbuster's picture

She's right about the Muslims, are you talking about the Jews?

Piranhanoia's picture

You know about the whole world?  the universe, everything? (sarc off)

pelican's picture

Getting the rest out Jan 1st.  Don't want to take the tax hit all at once.

topcallingtroll's picture

They all knew what they were doing.
But best not to say anything specific.

I dont see a difference between rehypothecation and comingling.

NotApplicable's picture

Rehypothetically* speaking, that is.

(*right-click, "Add to Dictionary")

IQ 101's picture

You got 'CORZINED', coming to a dictionary near you!

slewie the pi-rat's picture

yes, they knew, but re-hypothecating is not commingling, so they have a "legal" out, legal cover.  what they were doing is, apparently, technically legal;  the IMF published a paper on it a few years ago, quantifying its effects around/thru lehman's blow-up vie same-same re-hypoth thru lehman's europeon branch in The City

this is the same unregulated, shadow-banking leverage source and mechanism which blew lehman upskie, it seems

they moved the funds from reg.T in the US (140% re-hypoth) to unlimited re-hypoth @ their coroprate arm in London

they didn't "co-mingle";  the losses of client funds are due to the unintended consequences of re-hypoth "investing" schemes, that's all!

how could corzine, former head of g/Sachs, have understood any of this? //s//

Captain Willard's picture


You nailed it. Bruce Krasting also nailed it the other day in his column.

These cynical fuckers are using this "re-hypothecation" loophole to try to escape.

I'm not sure it will work. They can also be accused of deepening an insolvency if they deliberately borrowed more money after they had reason to believe MF was insolvent. This would be fraud.


chubbar's picture

Slewie, perhaps you can shed some light on my understanding here. They can only re-hypothecate up to 140% of outstanding obligations. The example given was that if someone had a $500 account which consisted of $300 owned (fully paid for) and $200 borrowed, the institution could re-hypothecate $280 worth ($200 x 140%). I also understand that they can transfer this amount ($200) to a sister institution in London and re-hypothecate it into an unlimited amount. However, that still doesn't give the institution the right to steal the $300 worth of securities that were paid for by the client, or does it?

My brokerage agreement states that the SEC does not allow for hypothecation of securities fully paid for. That doesn't mean they didn't do it illegally, but I'm just questioning whether this is truly legal to hypothecate the whole account, including those securities fully paid for?


slewie the pi-rat's picture

i've seen the example but i'm not used to thinking in those terms;  maybe mistakenly, i am under the opinion that MF (and lehman) moved entire trainloads of accounts to offices in other jurisdictions

as long as your brokerage doesn't hold your account at an affiliate's in london, you've got a fightin chance!


Potemkin Village Idiot's picture

They're just trying to while away the hours until IMPORTANT things like getting Roger Clemens behind bars come to the docket...

Sunshine n Lollipops's picture

Not to mention Barry Bonds. Because the Sanctity of the Game must be preserved. Congress is absolutely useless.

fuu's picture

They have a good Minnesota Farmer up there today. Too bad he is a bit nervous.

FEDbuster's picture

He should keep it simple, "MFG stole my money, forced me to liquidate my hedges and cost me $100,000+ in losses to my farm.  Jon Corzine is a crook, thief, criminal and should be jailed today."  Answer every question the same way, as many times as you can.

fuu's picture

That is how I would have answered Lugar's softball system fluffing comments. These guys are not broke due to risk taking or market maneuvers. They are broke because their money was stolen. Arresting and convicting thieves would go a long way to adding confidence back to markets.

Mr Lennon Hendrix's picture

they dn't want confidence, they want chaos