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.

Witnesses

Panel I

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

Mr. Dean Tofteland
    Farmer
    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
    Trustee
    Securities Investment Protection Act liquidation of MF Global, Inc.
    New York , NY

Hon. Jill Sommrs
    Commissioner
    Commodity Futures Trading Commission
    Washington , DC

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Doomsday Profit's picture

Gerald....you stole my "Three Card" Monti line and I'm slightly annoyed...honored, but annoyed.  I think you should give me a free subscription to Trends Journal!!!

c'mon man's picture

Last week he was "Honorable John Corzine"

This week he is "Hon. Corzine"

Next week he should be "Inmate 213334JC"

Burgess Shale's picture

Corzine said he never authorized the misuse of customer funds.  He should be asked if he ever authorized the use of customer funds, not the misuse. 

XitSam's picture

Chambliss almost nailed him on the "misuse" BS.  But he escaped with some rule 125 slippery stuff.

Village Smithy's picture

Somewhere in the hierarchy of MFG there is an Oliver North, who somehow managed, on his own, to hatch this plan, gather the neccessary resources and then put it into operation, without authorization from anyone. What an incredible soldier. 

ebworthen's picture

 

 

You can't find the money?  Really?  Let's see if the people who have lost money can find it in your homes, eh boys?

Dr. Engali's picture

How about this question?     Do you, Mr. Corzine ,expect us to believe that in this day and age of computer transactions that you can't trace the missing funds? Have you checked the Seychelles islands?

Lotus's picture

maybe the MF Global janitors know something?

Temporalist's picture

"The Help" always knows...

cranky-old-geezer's picture

 

 

Corruptzine: I didn't intend ta rob doze accounts, but ya see, JPM was sendin da boyz afta me, I had ta come up wit da dough.

ebworthen's picture

Put them on a wobbly stool with a noose around their neck and see if they can come up with some better answers.

Oh no, we're too "civilized".

So civilized that we allow assholes like this to rob the old, the sick, the unborn.

GoinFawr's picture

I can't explain it but somehow whenever I see "CFTC" or "SEC" I am reminded of this song:

http://vimeo.com/10171355

warning: virginal eardrums may have their hymens blown out, even though the language is fine.

 And JC, well...

http://www.youtube.com/watch?v=fxrd_jZJxkg

 

marcusfenix's picture

hey I figured it out... the money is stuffed inside that drone that got brought down by the Iranians last week. see that's why Obama took a personal interest and called or whatever to ask for it back. makes sense considering him and Corzine are so tight and when MF global blew up they needed some place quick and stealthy to stash and move the loot. unfortunately, that drone got rerouted to a secret CIA spy mission over Iran and given the fact that the pilot was not expecting to have to compensate for the weight of a billion or so dollars, well, down it went.

now all the Iranians have to do is crack that bitch open like a pinata and...merry Christmas Mullahs!

it's all so obvious...

AC_Doctor's picture

Maybe Obozo's birth certificate was in the drone too.  He definately doesn't want that back...

earleflorida's picture

someone please help me out here - if, 'mf global' can't come up with a measly ~$1.2bn in a $600tn market[?],... somehow, this implicitly  tells me the entire [re]-hypothecation ponzi scheme is/was leveraged 600:1

jmo 

help me with the numbers?

AC_Doctor's picture

Cuntz questioning kuntz.  Whatya expect.  A laser guided GBU-28 could quickly solve many monetary problems at once.

The Guided Bomb Unit 28 (GBU-28) is a 5,000-pound (2,268 kg) laser-guided "bunker busting" bomb nicknamed "Deep Throat" produced originally by the Watervliet Arsenal, Watervliet, New York. It was designed, manufactured, and deployed in less than three weeks due to an urgent need during Operation Desert Storm to penetrate hardened Iraqi command centers located deep underground. Only two of the weapons were dropped in Desert Storm, both by F-111Fs

Bastiat's picture

Yep. They used a Howitzer barrel for the body of the bomb.

Piranhanoia's picture

Since this isn't really government in action without law enforcement,  would someone just update the post if the sargeant at arms arrests someone?

Alex Kintner's picture

"I don't recall commingling. Cunnolingus with Obama yes, but not comminglus."

TheAkashicRecord's picture

The CFO kept on answering questions by trying to justify his ignorance through repeatedly bringing up the fact that (paraphrase) "MF global is global and big, there are many jurisdiction with their own codes, directors, etc etc"

With that in mind, why would he sign off on Sarbanes-Oxley sec 404 (the internal controls thing) if the size and distributed nature of the company was such a huge hinderance to knowing what was really happening?

Someone should bring this up and catch this fucker in a little paradaox.  

 

s2man's picture

I'm not getting any audio.  So, since his lips are moving, I will assume he is lieing.

silverserfer's picture

i think that certan people at the FED, CIA,, JPM and GS know exactly where the $ went

silverserfer's picture

yo no conprendo compadre. SO SUCK IT BITCH!  BAAAAAAAAAM! (HANDS TO CROTCH)

silverserfer's picture

I learned it by watching you Bernie! I learned it by watching you. (sob)

Dcheeth2's picture

"Where did the money go?"

 

"I ate it, it was delicious,now, can I go drink with my chums from GS?".

AndrewCostello's picture

These guys are just going through the motions.  They blatantly stole the money, and they will just go to these proceedings and lie through their teeth.

 

That's what their kind do.

 

Read:

http://www.amazon.com/Simple-Wealth-Mr-Andrew-Costello/dp/1463523017/ref

rockraider3's picture

I know the treasurer of a west-coast based broker/dealer.  I spoke to him yesterday and the topic turned to MF Global. He was amazed that client funds could go missing.  This firm is regulated by FINRA, while MF Global was regulated by the CFTC, but FINRA requires a weekly calculation of funds that are required to be segregated into a separate account.  That account is titled to be for the benefit of clients and is protected against lien or offset by the bank that holds the funds, generally through a letter of no-offset (or something to that effect).  Apparently this firm cannot remove any funds from the segregated accounts until they update the calculation for what is required to be in this account.

That said, this Treasurer says there is only two ways to his knowledge that client funds could go "missing". First is either through mistake or purposely diverting funds, the firm might transfer funds into the wrong account instead of the client segregation account.  However, this is easy to track (ie wire transfers with Fed No's to track flow of funds).  And if a mistake, this would be caught "within two seconds" per this Treasurer, so it wouldn't be in the wrong account very long.  If on purpose, again, should be very easy to find the trail.  They didn't go to a branch to withdrawl $1-2B in funds... there would be a trail.

The second way funds could go "missing" and the likely reason per this Treasurer is that the funds are NOT missing.  They were invested.  In European Soveriegn Debt.  The value of which decreased significantly.  So money isn't missing, they were invested in an asset that is declining in value.  And the value of the securities is now $1-2B lower than when purchased.  FINRA only allows this broker/dealer to invest in US Gov't securities, etc with these funds.  That's it, nothing else, they are even limited from most Money Market Accounts.  The CFTC was apparently allowing MF Global to invest in European Soveriegn Debt, which they did with their client segregated funds.

I don't claim to know for certain, but it sounded pretty logical to me.  Thought it was worth sharing. 

We also spoke about re-hypothecation for a while, that was pretty interesting, coming from a broker/dealer perspective.

TheAkashicRecord's picture

//They were invested.  In European Soveriegn Debt.//

Corzine has repeatedly said during this hearing that this was not the case.  

Note: I am not saying that he was not lying when he said this, just repeating what he said.

Everybodys All American's picture

No one knows where the money went and not one Congressman blows a gasket? They just accept this as the truth. Wow.

Dr. Engali's picture

Looks like they are setting the CFO as the fall guy.

Mr Lennon Hendrix's picture

blame the foreigner!

remember fab?

Mr Lennon Hendrix's picture

corzine doesn't have his 7

bwahahaha!

chaartist's picture

BEyonce: The singer bought a small cabana in 2002 for $465,000 but sold it in Nov. for $110,000.? 

Mr Lennon Hendrix's picture

tax write off

her and jay z are good at those

Mr Lennon Hendrix's picture

what happened to the segregated accounts?

They were rehypothecated, you dumbass

is anyone still wondering why cameron didn't sign the EU treaty

willien1derland's picture

This is an instance where the GREEN ARROW should allow for increments of 1,000 - Cameron's dilemma - agree with a bunch of spineless liars who would sell their children without concern OR side with the Bankers of London where I live & OWN said spineless liars....Hmmm, I need to make a phone call, "Hello Lennon?, David here...Have a bit of a dilemma & I would like your advice regarding the EU Treaty...And the rest is HISTORY!

Mr Lennon Hendrix's picture

cameron knew what a tobin tax on rehypothecated loans would look like

Gordon Marock's picture

If I were on the panel, I would have asked 'Gov. Corzine, at any point in time, did the cleaning staff have unsupervised access to your office.'

willien1derland's picture

Corzine best be careful because farmers in Montana are armed & dangerous...Could NOT happen to a more deserving PRICK - Hold on, back to the Congressional hearing where Congresswoman Lindsay Lohan asks the Honorable Jon Corzine "Mr. Corzine, what is it like being so misunderstood?'

mattu13048's picture

Real video from MF Global office just before they filed for bankruptcy: http://bit.ly/tk1vLa

Cone of Uncertainty's picture

"Sen Corzine, who stole that money?"

Treasury.

"Who abused rule 125?"

Treasury

"Who would have moved client funds out of the segrated accounts?"

Treasury

"Who bankrupted the company?"

Treasury

Who killed JFK?"

Treasury

 

mattu13048's picture

THE ONLY APPROPRIATE INVESTMENT VEHICLE FOR CUSTOMER SEGREGATED FUNDS IN A FCM IS US TREASURY PAPER: 90 DAY T-BILLS. NOTHING MORE OR LESS. DEAL WITH IT!

apu123's picture

I may sound paranoid but I think this whole legal charade is being put on for a purpose.  Once it becomes accepted that firms like MFG can just take customer money to pay for bad trades they are all going to do it with government's passive consent.  Perhaps that is why BofA moved their trillions in derivative exposure over to the banking side, to grab all those depositors' money.  In my opinion the government has been looking to tap our money and can not do it through higher taxes or mandatory IRA/401k reinvestment, as that would be politically damaging.  So why not use all that revenue sitting in checking, savings and brokerage accounts to help pay down these institutions debts.  That way the government does not have to officially do it and can "cut" bail out expenses, can wrist slap the offenders and have more multitudes of people dependent on them after they are all wiped out.  They could then slap some high taxes on the people who were lucky enough not to get wiped out and demonize them as evil speculators and part of the 1%.

That way you get two goals achieved for the price of one!

eblair's picture

Why can't they call in a few underlings, give them immunity, and ask every question? Or are they not going to do that because the fix is in?

TheAkashicRecord's picture

None of them claims to know what rehypothecation is?  

Joebloinvestor's picture

I hope Gensler ends up indicted with Jon.

What a fucking lame excuse to recluse himself.

So fucking what they both worked at GS.

I got news, if these sleazeballs are gonna recluse at the drop of a hat for some BS reason, I say FIRE THEIR ASSES.

The "revolving door" between GS and the government guarantees that at some point people from the same criminal enterprise are gonna be on opposite sides of the table.

It should have been Genslers "moment" to man up and show why he deserved the position he is in, instead of being an accomplice.

 

 

High Plains Drifter's picture

http://vidrebel.wordpress.com/2011/12/13/silver-wars-attack-on-the-comex-slv-and-mf-global/

 

mf global takedown was done to keep comex from blowing up over lack of silver bullion ....

 

sell gold. buy silver.  silver was always the baby doll. from day one.   i knew it all along..........

SanOvaBeach's picture

Watching the MF Global investigation hearings is really sick.  Like watching three (3) stupid monkeys that know nothing about anything.  These jack-offs have brought double-talk to a new level!  The Blago-jerk finally got his 14 years.  I hope these get it eventually too!