Again, why isn’t Jon Corzine in jail?
I asked last night,
— Fausta (@Fausta) March 23, 2012
The Oct. 28 email was disclosed in a five-page memo released Friday afternoon by a House Financial Services subcommittee. The panel is investigating what caused an estimated $1.6 billion shortfall in customer funds at MF Global, which collapsed into bankruptcy Oct. 31.
Memo on MF Global
Edith O’Brien, an assistant treasurer who was among the employees involved in moving money at MF Global, wrote in the email that the $200 million transfer to an MF Global account at J.P. Morgan Chase JPM +1.14% & Co. in London was “Per JC’s [Jon Corzine’s] direct instructions,” according to the memo.
The transfer was needed to fix a $175 million overdraft in the bank account that was making it harder for MF Global to buy and sell securities as it scrambled to survive in late October, according to the memo.
Customer accounts hold both firm money and customer money that isn’t supposed to be touched under federal regulations. In testimony to lawmakers in December, Mr. Corzine, the former Goldman Sachs Group Inc. GS +1.15% chairman and New Jersey governor who was MF Global’s CEO, said he never directed anyone to misuse customer funds.
“He stands by that testimony,” a spokesman for Mr. Corzine said…
The $200 million transfer is one of three types of key transactions that led to the large shortfall in customer funds, the subcommittee found. The others are intraday loans between MF Global’s futures commission merchant and its broker-dealer and transactions related to the funding of outgoing broker dealer client money, the subcommittee found.
The Journal previously disclosed a $165 million transfer sent to the broker-dealer that came from the customer account.
Is this going to become a she said/he said?
Again, Corzine doesn’t know where the client funds went?