Remember ENRON? In comparison, that was a misdemeanor.
Remember former Democratic Senator John Corzine stating under oath that he knew nothing of any transfer of customer funds?
By Phil Mattingly and Silla Brush | Bloomberg
Jon S. Corzine, MF Global Holding Ltd. (MFGLQ)’s chief executive officer [and former Democratic Senator from New Jersey], gave “direct instructions” to transfer $200 million from a customer fund account to meet an overdraft in a brokerage account with JPMorgan Chase & Co. (JPM), according to a memo written by congressional investigators.
Edith O’Brien, a treasurer for the firm, said in an e-mail quoted in the memo that the transfer was “Per JC’s direct instructions,” according to a copy of the memo obtained by Bloomberg News. The e-mail, dated Oct. 28, was sent three days before the company collapsed, the memo says. The memo does not indicate whether that phrase was the full text of the e-mail or an excerpt.
O’Brien’s internal e-mail was sent as the New York-based broker found intraday credit lines limited by JPMorgan, the firm’s clearing bank as well as one of its custodian banks for segregated customer funds, according to the memo, which was prepared for a March 28 House Financial Services subcommittee hearing on the firm’s collapse. O’Brien is scheduled to testify at the hearing after being subpoenaed this week.
“Over the course of that week, MF Global (MFGLQ)’s financial position deteriorated, but the firm represented to its regulators and self-regulatory organizations that its customers’ segregated funds were safe,” said the memo, written by Financial Services Committee staff and sent to lawmakers.
Somehow I doubt the LSM will have much to say about this titanic fraud and perjury before Congress.
Which says a lot about the LSM.
Hat Tip: Ace at Ace of Spades.