Posted 5 years ago on March 25, 2012, 3:59 p.m. EST by Devoghe
This content is user submitted and not an official statement
JP Morgan-MF Global-Euro Gate Escalates
by Tom Heneghan Sunday March 25, 2012
“UNITED STATES of America – It can now be reported that the U.S. Senate Committee on Banking has new evidence showing that JP Morgan had a $200 million overdraft aka a second margin call on the London LIFFE Exchange three days before the MF Global bankruptcy fiasco was triggered.
The second margin call (the first margin call was four days earlier for $175 million) dealt with cross-collateralized, compounded naked euro currency put options that were written by JP Morgan with the transactions being placed through the CME Group and the aforementioned London LIFFE Exchange.
We can now divulge that, thanks to PROMIS software, MF Global took the opposite side of the trade.
Note: The fact that MF Global took the opposite side of the trade is a significant development and it completely torpedoes the ISDA’s (International Swaps and Derivatives Association) legal standing that declared the latest Greek bailout a non-credit event rather than what it really is, a Greek default….”