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« GREECE - Collapse Of Government Is Imminent | Main | CNBC Update - Tracking The Missing Funds From MF Global »
Tuesday
Nov012011

BREAKING - MF Global Admits Using Client Money

This is not looking good for former New Jersey Senator and Governor, and previously Goldman Sachs CEO Jon Corzine.  More than $700 million of supposedly safeguarded client funds were stolen by MF Global to support besieged trading positions.  Jon Corzine should go to prison.  If Corzine escapes without a Federal ID number and associated orange jumpsuit due to fundraising ties with Obama and Eric Holder, then the game is over.

The rule of law is dead.

---

The admission is here:

AP

WASHINGTON (AP) — MF Global, the failed securities firm led by Jon Corzine, admitted using clients' money as its financial troubles mounted, a federal official says.

An MF Global executive admitted that to federal regulators in a phone call early Monday after regulators discovered money missing from clients' accounts, according to an official familiar with the conversation.

The official spoke on condition of anonymity because he wasn't authorized to discuss an investigation by federal regulators.

Government rules require securities firms to keep clients' money and company money in separate accounts. Violations can result in civil penalties.

The investigation of MF Global Holdings Ltd. is preliminary. A formal investigation by the company's main regulator, the Commodity Futures Trading Commission, requires a vote by its five commissioners.

It isn't clear whether the violations could lead to criminal charges.  At a news conference, Manhattan U.S. Attorney Preet Bharara would not comment on whether a criminal investigation is underway involving the revelations at MF Global.

Continue reading...

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1. Where were the regulators? By the time the Federal Reserve Bank of New York suspended MF Global, it was clear the firm was over leveraged, with some reports saying the ratio was 80-to-1. Client money is missing. At the very least, bookkeeping at MF Global was sloppy. Regulators and accountants should have stopped the madness before this point. The company was told to boost capital in August — but it’s clear the bank’s exposure was far greater than anticipated.

2. Where is the money? At least $700 million in client money is missing. This is a cardinal sin in the world of investment banking. Client money cannot be borrowed or mixed with house money. Should the suspicions prove true, this will be more embarrassment.

3. Why did Jon Corzine, MF Global’s CEO, claim everything was OK, in the company’s waning days? The former Goldman CEO was quoted less than a week ago saying “Reflecting the stressed markets in the quarter, we deliberately chose to reduce overall market exposure in most principal trading activities and focused on preserving capital and liquidity.”

http://www.marketwatch.com/story/3-big-questions-for-mf-global-fiasco-2011-11-01

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Reader Comments (22)

Thou shall not commingle funds...ever...Corzine and his bros at MF should be toast...
Nov 1, 2011 at 3:28 PM | Unregistered CommenterJosie
Wow. Corzine was one of Obama's specially chosen fundraisers, too.
Nov 1, 2011 at 3:30 PM | Registered CommenterDr. Pitchfork
Nov 1, 2011 at 3:31 PM | Registered CommenterDailyBail
Heysoos Effin Creesto. Does it ever end?
Nov 1, 2011 at 3:31 PM | Unregistered CommenterMiss Daisy
MF Global story being blocked or something.
Nov 1, 2011 at 4:06 PM | Unregistered CommenterPaul
"Government rules require securities firms to keep clients' money and company money in separate accounts."--Glass-Stegall used to keep investment banks and commercial banks separate before it was repealed. We know how that worked out
Nov 1, 2011 at 4:50 PM | Unregistered Commenterrobertsgt40
I wonder how big HIS bonus was for all that hard work???
Nov 1, 2011 at 5:02 PM | Unregistered CommenterWANMAN
When we see the first bankers being hung drawn and quartered we will know that the nightmare is coming to an end....
Nov 1, 2011 at 6:29 PM | Unregistered CommenterAndy
Isn't that special? Your prancing, mewling treasonous congressperson should be placed in the same rendering pot with the B.O. administration and these swine.
Nov 1, 2011 at 8:49 PM | Unregistered CommenterHoward T. Lewis III
Nov 2, 2011 at 12:09 AM | Registered CommenterDailyBail
Nov 2, 2011 at 12:09 AM | Registered CommenterDailyBail
Dec 20, 2011 at 12:08 PM | Unregistered Commenterjohn
MF Global Missing Funds May Be Uncovered

https://www.hedgefund.net/publicnews/default.aspx?story=13167

One of the e-mails referred to $200 million that MF Global owed JP Morgan Chase. Information from the e-mail chain indicates the transfer was made by Edith O’Brien, a treasurer for the firm.

Investigators believe the $200 million that JP Morgan Chase received is entirely customer money.

While O’ Brien has not been accused of any wrongdoing, she is now considered a person of interest in the ongoing investigation.

The Times also reported that authorities suspect the firm also used customer funds to settle payments with trading partners, which accounts for the remaining $1 billion that's missing.
Dec 22, 2011 at 10:29 PM | Unregistered Commenterjohn
MF Global exec chairs EPA financial advisory committee
http://www.canadafreepress.com/index.php/article/43553

Note: this article is in The Washington Times but is difficult to access.
Dec 29, 2011 at 10:07 AM | Unregistered Commenterjohn
More on Bradley Abelow who is the MF Global executive who chairs the EPA financial advisory committee..

http://mba.yale.edu/alumni/alumni_profiles/abelowb.shtml

Prior to joining MF, Brad was a founding partner of NewWorld Capital Group, a private equity firm investing in businesses active in environmental opportunities (alternative energy, energy efficiency, waste and water treatment, and environmental services).
Dec 29, 2011 at 11:53 AM | Unregistered Commenterjohn
He will get probation and get to keep about $85 million after bribes and Israel's cut. Americans only care about themselves and their own close friends, so the affected investors are probably SOL unless they remove their silly neckties and get down to business before the verdict is in. They are on their own. Universities hold classes to teach how far crooks are allowed to go as far as looting the public. The instant a confederate Georgetown judge sets a precedent, another nail driven home into the coffin containing the carrion of the positive hopes for the American empire. I can see the flag of Britannia unfolding in preparation for hoisting up a mast in the Foggy Bottom.

Utilization of clients' accounts as a 'resource of fiduciary exploitation' is now the norm in the age of deregulation. Look who sits on the SCOTUS. It would cost the affected clients millions to have the black robed soldiers of the Vatican and The City of London tell them all to 'shut up and go home' and call it the 'Acme of American Jurisprudence'. I call it money in the bank for a judicial system corrupted by a foreign entity. These clients ripped off by Corzine have been doing it to others through a proxy using the 'esoteric investment skills' of this Corzine financial disease. My guess is that the chickens have come home to roost.
Dec 29, 2011 at 1:28 PM | Unregistered CommenterHoward T. Lewis III
More on Abelow...


Bradley Abelow Relationship map:



http://www.muckety.com/5C23BED9E488BD1BF69C9C0F1E9CFF81.map

=============================

Bradley Abelow is a trustee of Century Foundation. John Podesta, the Director of the Soros Funded Center for American Progress is also a trustee.



http://www.muckety.com/510F0554BA6E714B39CE561E4DE4F745.map

===============================

Recap:

1. Bradley Abelow, an EPA financial advisory board member and Lisa Jackson the EPA Director have ties to John Corzine (who while CEO of MF Global…now bankrupt with a loss of 2,500 jobs). Each served at different times as the governor’s chief of staff.

2. Bradley Abelow also has ties to the Century Foundation (claims to be non-partisan) of which their are 22 trustees including John Podesta, the President and CEO of the Soros funded Center for American Progress.

Century Foundation website

“Progressive Ideas that Advance Security, Opportunity and Equality”

Board of Directors and Trustees



3. Mr. Abelow’s role as a financial adviser for the Environmental Protection Agency, which as of Tuesday listed him as the chairman of its financial advisory board.

It’s unclear how Mr. Abelow landed the chairmanship of the EPA financial panel, a position he noted in his biography on the MF Global website, which has since been removed.
Dec 29, 2011 at 5:17 PM | Unregistered Commenterjohn
MF Global sold assets to Goldman before collapse: sources

http://uk.reuters.com/article/2012/01/04/us-mfglobal-goldman-idUKTRE8030UT20120104

[snip]

MF Global unloaded hundreds of millions of dollars' worth of securities to Goldman Sachs in the days leading up to its collapse, according to two former MF Global employees with direct knowledge of the transactions. But it did not immediately receive payment from its clearing firm and lender, JPMorgan Chase & Co (JPM.N), one of the sources said.
Jan 4, 2012 at 11:47 AM | Unregistered Commenterjohn
Freeh blocks regulators’ request in MF Global cas

http://news.muckety.com/2012/01/06/freeh-blocks-regulators-request-in-mf-global-case/35741


http://www.zerohedge.com/news/40-wall-street-john-corzines-latest-office-space

40 Wall Street: John Corzine's Latest Office Space?

[snip]

It appears the Corzine-Carris ties may not be just office-space deep:

Joseph Principe, senior managing director at John Carris, declined to comment. Mr. Corzine hasn't made a decision, but he knows at least one of the securities firm's executives from earlier in his career, said a person familiar with Mr. Corzine's thinking.

One more connection between Mr. Corzine and John Carris: A list of recent transactions on the securities firm's website includes securities offerings for AMP Holding Inc., a Loveland, Ohio, designer of electric-vehicle conversion systems.


NOTE: Remember Mr.Abelow (Jon Corzine's right hand man) is the Chairman of the EPA financial panel and has interests here:

Prior to joining MF, Brad was a founding partner of NewWorld Capital Group, a private equity firm investing in businesses active in environmental opportunities (alternative energy, energy efficiency, waste and water treatment, and environmental services).
Jan 9, 2012 at 12:55 PM | Unregistered Commenterjohn
Farmers Sue Jon Corzine Over Missing Millions

http://abcnews.go.com/Blotter/farmers-sue-jon-corzine-missing-millions/story?id=15321298#.Tw3rO5iRi5Q

[snip]

MF Global's clients included 38,000 wheat farmers, cattle ranchers and others who "hedged" their crop prices by placing millions in MF Global accounts. Those accounts were supposed to be "segregated and secure," according to the federal suit, meaning MF Global could not draw on those funds.
Jan 11, 2012 at 3:06 PM | Unregistered Commenterjohn
John...thanks for providing updates for readers.
Jan 12, 2012 at 11:03 AM | Registered CommenterDailyBail

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