Barry Zubrow, JPMorgan’s chief risk officer, called Corzine to seek assurances that the funds belonged to MF Global and not customers. JPMorgan drafted a letter to be signed by O’Brien to ensure that MF Global was complying with rules requiring customers’ collateral to be segregated. The letter was not returned to JPMorgan…
Muriel Kane
The Raw Story
3/23/2012
In a shocking new revelation concerning last fall’s collapse of New York brokerage firm MF Global, it has been learned that CEO Jon S. Corzine personally ordered the transfer of $200 million out of a customer fund to cover an overdraft at one of the firm’s own accounts with JPMorgan Chase.
Bloomberg News reported on Friday that an internal email sent by the firm’s treasurer and dated three days before the company collapsed at the end of October described the transfer as being “Per JC’s direct instructions.”
Corzine, a former governor of new Jersey, had testifed before a congressional committee in December that “I did not instruct anyone to lend customer funds to anyone.”
“I simply do not know where the money is, or why the accounts have not been reconciled to date,” Corzine told the investigators at that time…
The article continues, with video, at The Raw Story.
