Quantcast
Feeds: Email, RSS & Twitter

Get Our Videos By Email

 

8,300 Unique Visitors In The Past Day

 

Powered by Squarespace

 

Most Recent Comments
Cartoons & Photos
SEARCH
« Jailed UBS Banker Awarded $104 Million By IRS | Main | New Aerial Photos Of 9/11 World Trade Center Collapse »
Wednesday
Sep122012

Now We Know Which Senior MF Global Employee Told Investigators That Jon Corzine Had Direct Knowledge Of Customer Funds Being Stolen

CME Chairman Terry Duffy tells the Senate that Jon Corzine was aware that customer accounts were being illegally tapped for MF Global collateral - Dec. 13, 2011.

This is the congressional clip where the hint was first dropped.  We assumed at the time it was Edith O'Brien.  It is in fact, O'Brien's boss, Christine Serwinski, who was on vacation during the final week of customer pillaging.

Gasparino broke the story yesterday.

---

Janet Tavakoli:

On October 28, JPMorgan didn't buy Corzine's story, either.  Having been a risk manager myself, I believe Barry Zubrow, JPMorgan's chief risk officer, did exactly the right thing.  He called Jon Corzine to get him to verify that the funds belonged to MF Global and that none of the money was customer money. Zubrow, an outsider, was well aware of the possibility that customer funds had been transferred. It's implausible that Corzine wasn't aware of the potential impermissible transfer of customer funds when he gave the authority to make the transfer. By doing its job, JPMorgan removed Corzine's ability to credibly deny knowledge of the potential problem.

As for JPMorgan, it asked Jon Corzine for a signed letter stating that the transfer was legitimate. He reportedly responded: "Send me the letter and we'll have our people look at it." It was disingenuous of Jon Corzine to pass JPMorgan's letter to Edith O'Brien to sign given that it asked for a sign-off that all "past, present and future" transfers complied with the law. Ms. O'Brien would have been asked to take responsibility for all transfers without having the authority over them. Jon Corzine had the broad authority to sign the letter, but by passing it on, he effectively stalled.

JPMorgan sent additional versions of this letter in response to MF Global's requests for revisions, but JPMorgan never received a signed letter back.

 

A true must see:

Koutoulas Tells Rick Santelli: 'We Plan To Pursue Criminal Charges Against Corzine In All 50 States'

 

 

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments (4)

More on edith o'brien. She's no lightweight.

http://dailybail.com/home/cme-chairman-testifies-to-congress-a-senior-mf-global-employ.html

Ms. O’Brien is considered an expert of sorts on the protection of customer money at futures firms. In the last year and a half, Ms. O’Brien has made several appearances before the Commodity Futures Trading Commission. On at least two occasions, she was a panelist at roundtable discussions held at the agency on the topic of safeguarding customer money, and also attended at least three meetings with agency officials, including one titled “Practicalities of Individual Customer Protection.”
Sep 12, 2012 at 4:24 AM | Registered CommenterDailyBail
Janet Tavakoli adds detail:

On October 28, JPMorgan didn't buy Corzine's story, either. Having been a risk manager myself, I believe Barry Zubrow, JPMorgan's chief risk officer, did exactly the right thing. He called Jon Corzine to get him to verify that the funds belonged to MF Global and that none of the money was customer money. Zubrow, an outsider, was well aware of the possibility that customer funds had been transferred. It's implausible that Corzine wasn't aware of the potential impermissible transfer of customer funds when he gave the authority to make the transfer. By doing its job, JPMorgan removed Corzine's ability to credibly deny knowledge of the potential problem.

As for JPMorgan, it asked Jon Corzine for a signed letter stating that the transfer was legitimate. He reportedly responded: "Send me the letter and we'll have our people look at it." It was disingenuous of Jon Corzine to pass JPMorgan's letter to Edith O'Brien to sign given that it asked for a sign-off that all "past, present and future" transfers complied with the law. Ms. O'Brien would have been asked to take responsibility for all transfers without having the authority over them. Jon Corzine had the broad authority to sign the letter, but by passing it on, he effectively stalled.

JPMorgan sent additional versions of this letter in response to MF Global's requests for revisions, but JPMorgan never received a signed letter back.

http://dailybail.com/home/cme-chairman-testifies-to-congress-a-senior-mf-global-employ.html
Sep 12, 2012 at 4:29 AM | Registered CommenterDailyBail
Eric Holder's Best Friend, Lawyer Reid Weingarten Also Represents MF Global Treasurer Edith O'Brien

http://dailybail.com/home/eric-holders-best-friend-lawyer-reid-weingarten-also-represe.html
Sep 12, 2012 at 4:29 AM | Registered CommenterDailyBail
Reported to the "Justice Department"? Might as well report it to Howdy Doody and Clarabelle the clown...
Sep 12, 2012 at 5:25 AM | Unregistered Commenterchiller

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
All HTML will be escaped. Hyperlinks will be created for URLs automatically.