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Old 03-23-2012, 06:12 PM
 
Location: New Jersey
10,313 posts, read 14,468,237 times
Reputation: 11028

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Here's the smoking gun. Time for Jon (which will never happen) to met his new roommate Bubba.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

WASHINGTON — A former MF Global executive is contradicting testimony from Jon Corzine, saying the former senator ordered the transfer of $200 million last fall out of a customer account days before the firm collapsed, according to an email obtained by congressional investigators.

Edith O'Brien, the former assistant treasurer, says Corzine ordered the money shifted to one of the firm's bank accounts overseas on Oct. 28 to cover an overdraft, according to a memo that cited the e-mail.

The email noted that the transfer was made "per JC's direct instructions."

MF Global filed for bankruptcy protection on Oct. 31. The firm failed because of a disastrous bet on European debt. About $1.6 billion of customers' money hasn't been recovered.

A House Financial Services subcommittee released the memo Friday in advance of a hearing Wednesday. O'Brien has been subpoenaed to testify. The Associated Press could not reach her for comment.

In December, Corzine told the panel: "I did not instruct anyone to lend customer funds to MF Global or any of its affiliates." Corzine also told the subcommittee he didn't know about "the use of customer funds on any loan or transfer."

And Corzine told a Senate panel two days earlier: "I never gave any instruction to anyone at MF Global to misuse customer funds."

A representative for Corzine didn't immediately return a telephone call seeking comment.

Client money is required by law to be held separately from a brokerage firm's cash to protect investors in case a firm fails. If MF Global misused client money, it would violate a fundamental investor protection for people who trade options and futures.


Many lawmakers have heard from farmers, ranchers and small business owners in their states who are missing money that was deposited with the firm. Agricultural businesses use brokerage firms like MF Global to help reduce their risks in an industry vulnerable to swings in oil, corn and other commodity prices.

Corzine, a former New Jersey governor and U.S. senator from the state, led MF Global until early November. He testified before three congressional panels in December. He said he didn't become aware of the shortfall in customer money until hours before MF Global's bankruptcy filing.

No one has been charged in the MF Global case. In addition to Congress, federal regulators and a federal grand jury in Chicago are investigating.

Jon Corzine, Ex-MF Global CEO, Gave 'Direct Instructions' To Transfer $200M From Customer Account
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Old 03-24-2012, 01:10 PM
 
239 posts, read 439,514 times
Reputation: 149
You could tell that Corzine was lying when in was in front of Congress on more then one occasion. And if I'm not mistaken he will be before them again next week. There's something about this guy that I never liked, maybe it's the way he comes off, not at all trustworthy. Hopefully for the sake of all the people who lost millions of dollars because of this crook, justice will prevail. It does seem like the smoking gun Congress has been looking for has surfaced.
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Old 03-24-2012, 04:57 PM
 
Location: NJ
19,629 posts, read 14,106,790 times
Reputation: 13737
Hey, JC suckered the NJ electorate too but that didn't take much effort.
The absentee governor who crashed on the way to hang with that famous radio personality and RU basketball team initially blamed a pick up truck for his crash. Now who is he going to blame?

We will just sit back and watch Obama's first choice for sec of treasury work his way through the legal system. Amazing that they figured Geithner had the most pardonable criminal offense and passed obver JC. I'll bet they knew something back then.

JC had best hope for a quick conviction because he has only until january 2012 to earn a pardon from the outgoing Obama.
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Old 03-25-2012, 08:25 AM
 
Location: New Jersey/Florida
5,738 posts, read 11,626,731 times
Reputation: 4145
once a thief, always a thief. i love how these bankers can get away with stealing billions and nothing happens but if you or I steal a pack of hot dogs we would go to jail.
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Old 03-25-2012, 12:01 PM
 
Location: Elsewhere
71,743 posts, read 67,757,068 times
Reputation: 89794
Quote:
Originally Posted by JERSEY MAN View Post
once a thief, always a thief. i love how these bankers can get away with stealing billions and nothing happens but if you or I steal a pack of hot dogs we would go to jail.
Well, at least they dropped the charges against the Brookdale College kid who "stole" a cup of ice from the school caferia. We must be making progress as a society.

Charge is dropped against N.J. college student accused of stealing cup of ice | NJ.com
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Old 03-25-2012, 02:34 PM
 
Location: NJ & NV
5,675 posts, read 15,060,155 times
Reputation: 2296
You know, to me, in principle, if you own the ice cream truck you are allowed to eat all the ice cream you want. If he wanted to transfer money to a bag in the zoo, he's the boss and I see nuffin' wrong with that. Not that I am any fan of his, not at all. his policies are causing daily commuting pain as people try to avoid his legacy of toll increases for the "little people". But I see nothing wrong with him taking some or all the money from his corp that he wants.
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Old 03-25-2012, 04:38 PM
 
Location: New Jersey
10,313 posts, read 14,468,237 times
Reputation: 11028
Quote:
Originally Posted by captne76 View Post
You know, to me, in principle, if you own the ice cream truck you are allowed to eat all the ice cream you want. If he wanted to transfer money to a bag in the zoo, he's the boss and I see nuffin' wrong with that. Not that I am any fan of his, not at all. his policies are causing daily commuting pain as people try to avoid his legacy of toll increases for the "little people". But I see nothing wrong with him taking some or all the money from his corp that he wants.
Big difference, is that it wasn't his money to take. It was MF clients money.
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Old 03-26-2012, 10:09 AM
 
Location: NJ & NV
5,675 posts, read 15,060,155 times
Reputation: 2296
Quote:
Originally Posted by camaro69 View Post
Big difference, is that it wasn't his money to take. It was MF clients money.
Understood, but I feel once you or anyone give away your money by investing it, it's not yours anymore.
You are at the least at the mercy of whomever you gave away your money to.
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Old 03-26-2012, 11:23 AM
 
3,509 posts, read 3,518,292 times
Reputation: 1621
Quote:
Originally Posted by captne76 View Post
Understood, but I feel once you or anyone give away your money by investing it, it's not yours anymore.
You are at the least at the mercy of whomever you gave away your money to.
You have no idea what you are talking about.

Futures/commodities, money is hold in a separate account to use as margin, or good faith money. The client does not need money to buy commodities. They can put up anything as collateral to buy the commodities.

It is the laws that futures customers money put in a segregated account.

Corzine broke a law.

Of course, he cares less because he is above it just like all the criminals who bought down the system in 07/08 and walked aways with hundreds of million each.
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Old 03-26-2012, 03:26 PM
 
527 posts, read 1,282,223 times
Reputation: 688
News today is that Corzine's emails show he did NOT know the money was from Cust acct.

Yes, he said to move the money, but very unclear at this point if he actually knew that the money was from Cust acct.

Chois at MF Global during those last days.
People trying to survive.
Normal time to communicate and double check, they did not have.

Not sure if this is what happened, but it common to have company money in Cust acct to cover that customer's short term losses in the market.
But perfectly legal to pull that out, for company biz, as long as customer money is not touched.
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