BREAKING NEWS: MF Global

Max Keiser  amongst others, has been talking about this for months now, but perhaps this is the "smoking gun"?

-- No investigation. No prosecution. Not even a slap on the wrist for Corzine. Not one single banking executive, trader, or institution has been prosecuted for what happened in 2008 other that Bernie Madoff and Charles Sanford, neither of whom created the hundreds of billions of dollars of fraudulent mortgages.

The American people have had the fight knocked out of them. This man is the former CEO of Goldman Sachs, a former governor, and a former Senator.  Who knows, his face might be on the one million dollar bill when we start printing them. -- MCR

Corzine Ordered $200 Million Of MF Global Customer Funds To Be Moved Before Bankruptcy

Business Insider,

23 March, 2012

A memo from Congressional investigators looking into the collapse of MF Global and the $1.6 billion in missing customer funds has revealed that the brokerage's former CEO Jon Corzine ordered $200 million to be transferred from a customer account to pay off an overdraft fee, according to Bloomberg.

The memo, which was obtained by Bloomberg, cites an email sent by Edith O'Brien—MF Global's treasurer—three days before the firm filed for bankruptcy. In the email, O'Brien writes the transfer was "per JC's direct instructions."

MF Global filed for bankruptcy Oct. 31, after negotiations to sell itself to Interactive Brokers fell apart as a result of the discovery of a shortfall in customer segregated funds.

The $200 million overdraft fee was paid to JP Morgan because MF Global had overdrawn on one of its accounts and it was “holding up vital business in the U.S.," MF Global Holdings Treasurer Vinay Mahajan had said in an Oct. 28th email.

The most recent bombshell may have huge implications for Corzine. Remember that a sacred rule in brokerages is that customer funds must be strictly segregated from the firm's money. Breaking such a rule on purpose could mean criminal charges.

Bloomberg is also reporting that JP Morgan's Chief Risk Officer Barry Zubrow had called Corzine after the money was transferred to make sure that the money was in compliance with those customer segregation rules. In reply, MF Global had drafted a letter to be signed by O'Brien to be sent to JPM, but it was never sent.

Last December, Corzine testified three times in Congress and reitered the fact that he does not "recall" ordering customer funds to used or moved.

Here is the Bloomberg report