Forum Post: The Relationship Between JPMorgan & MFGlobal /// MF Global Client Attorney Explains In 1 Sentence Why JP Morgan's Involvement In MF Global Is Suspicious
Posted 12 years ago on Dec. 15, 2011, 8:31 a.m. EST by MonetizingDiscontent
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MF Global Client Attorney Explains In 1 Sentence Why JP Morgan's Involvement In MF Global Is Suspicious
-Dec. 21, 2011-
James Koutoulas, one of the founders of the Commodity Customer Coalition—which represents the interests of over 8,000 MF Global customers, was just on CNBC to talk about the recent blitz of news on the investigation into MF Global's missing customer money. http://www.businessinsider.com/nyt-person-of-interest-identified-in-search-for-mf-global-customer-funds-2011-12
Koutoulas addressed a bank that's been popping up a lot in the investigation: JP Morgan. Reports this morning addressed emails that were sent between JP Morgan and MF Global in the brokerage firm's last days, and also the legality of a previously reported $200 million transfer from MF Global to JP Morgan.
Last week, it was announced that JP Morgan's involvement in the MF Global debacle would be investigated.
Koutoulas and the CCC has also taken on an active role against JPM—they've called for an active boycott of the bank, and they're talking about it on Twitter with the hashtag #BoycottJPM. https://twitter.com/#!/search?q=%23BoycottJPM
He also gave his reasons for why JP Morgan's involvement was suspicious:
"[JP Morgan] wear way too many hats in this situation. Their fingers are all over this. They were a custodian of customer segregated funds, they were a primary lender to MF Global..., they were head of the creditors' committee in bankruptcy court, they're buying customer claims for pennies on the dollar—vulture claims, and it appears that they just may have gotten favorable treatment by purchasing LME stock from MF Global... as well as buying these sovereign debt positions that have turned out to be profitable trades."
(((Continue Reading this article Here))) http://www.businessinsider.com/james-koutoulas-jp-morgans-involvement-in-mf-global-is-suspicious-2011-12#ixzz1hsVre9ap
MF Global Sold Assets to Goldman Before Collapse: Sources
http://news.yahoo.com/mf-global-sold-assets-goldman-collapse-sources-002332058.html
-Tue, Jan 3, 2012-
Barnhardt: MF Bankruptcy Illegally Filed As "Securities Firm" To Give JP-Morgan Priority Status
(Scroll to the 5:30 mark in this video)
(((Watch Here))) http://ml-implode.com/staticnews/2011-12-22_BarnhardtMFBankruptcyIllegallyFiledAsSecuritiesFirmToGiveJPMorga.html
-Dec 21, 2011-
Three Suspicious Involvements JPMorgan Has Had With The MFGlobal Case So Far
-December 22, 2011-
Commodity Customer Coalition founder James Koutoulas is requesting that MF Global bankruptcy Judge Martin Glenn investigate three potential legal issues that are said to have occurred in transferring of MF Global assets.
The key issues include the fact that JP Morgan was able to purchase MF Global bonds at a discount without any open bidding process and the assets were apparently sold without disclosure to or approval from the U.S. bankruptcy court or trustees.
The third issue centers on JP Morgan seeking special favors from the Federal Reserve to receive priority treatment over investor segregated fund accounts......
JPMorgan may have missing MF Global funds
http://www.cbsnews.com/8301-505123_162-57346154/jpmorgan-may-have-missing-mf-global-funds/
-December 21 2011-
(MoneyWatch) Federal investigators appear to have tracked down part of the $1.2 billion in missing customer cash at MF Global... http://dealbook.nytimes.com/2011/12/20/e-mail-clues-in-tracking-mf-global-client-funds/
JPMorgan Chase (JPM) http://markets.cbsnews.com/cbsnews/quote?Symbol=jpm&tag=contentMain;contentBody ...got it. The brokerage firm transferred roughly $200 million in client funds to JPMorgan three days before declaring bankruptcy on Oct. 31, The New York Times reports. http://dealbook.nytimes.com/2011/12/20/e-mail-clues-in-tracking-mf-global-client-funds/
The details are somewhat tortuous, so here's an abridged version of what seems to have happened. MF Global had a bank account with JPMorgan, which also cleared trades for the firm. When large financial losses at MF Global and a subsequent credit downgrade caused panicked investors to withdraw their funds, the futures trading firm was unable to pay its creditors.
As a result, MF Global overdrew one of its proprietary trading accounts with JPMorgan in London. The banking giant asked for the money, and MF Global repaid the company using customer funds. The firm is also suspected of using money belonging to its clients, many of which were farmers, ranchers and other business owners, to settle its debts with other trading partners.....
((Continue reading this article Here))) http://www.cbsnews.com/8301-505123_162-57346154/jpmorgan-may-have-missing-mf-global-funds/
Legality Of MF Global Asset Transfer Questioned
http://www.zerohedge.com/news/guest-post-legality-mf-global-asset-transfer-questioned
-12/21/2011-
Commodity Customer Coalition founder James Koutoulas is requesting that MF Global bankruptcy Judge Martin Glenn investigate three potential legal issues that are said to have occurred in transferring of MF Global assets. The key issues include the fact that JP Morgan was able to purchase MF Global bonds at a discount without any open bidding process and the assets were apparently sold without disclosure to or approval from the U.S. bankruptcy court or trustees. The third issue centers on JP Morgan seeking special favors from the Federal Reserve to receive priority treatment over investor segregated fund accounts....
E-Mail Clues in Tracking MF Global Client Funds
http://dealbook.nytimes.com/2011/12/20/e-mail-clues-in-tracking-mf-global-client-funds/
-December 20, 2011-
...One e-mail chain refers to the transfer of roughly $200 million that MF Global owed JPMorgan Chase on Oct. 28 — the firm’s last business day before it filed for bankruptcy. In that chain, a senior official in the firm’s Chicago office was told to make the transfer, said the people close to the investigation who requested anonymity because the inquiry was still open.
That official, Edith O’Brien, a treasurer at MF Global, is considered a “person of interest” in the investigation, said two of the people, who added that authorities expected to interview her in the coming days. It was not clear who had directed Ms. O’Brien, whose job was to oversee the customer money, to make the Oct. 28 transfer. The roughly $200 million that JPMorgan Chase received is said to be entirely customer money....
(((Continue reading this article Here))) http://dealbook.nytimes.com/2011/12/20/e-mail-clues-in-tracking-mf-global-client-funds/
JPMorgan Actions as MF Global Lender Likely to Be Probed
-December 14, 2011-
Dec. 13 (Bloomberg) -- The liquidator of the MF Global Inc. brokerage said that “certain” actions of JPMorgan Chase & Co., a lender to the broker-dealer’s parent, “are likely to be the subject of investigation.”
Who Gave Permission To A Bankrupt MF Global To Sell Italian Bonds To JPM At A 5% Discount To Market Value?
-12/13/2011-
...Did MF Global believe that the same exemption from the law that it apparently thought was applicable to its pre-petition, was also valid under bankruptcy?
Because if the firm did not get prior-permission form a bankruptcy judge to liquidate these assets, this is an act far worse than commingling and even the firesale of Lehman's US Brokerage to Barclays for pennies on the dollar - this is flaunting bankruptcy law front and center....
[Removed]
Max Keiser & Gerald Celente:
(((Watch Here))) http://www.youtube.com/watch?v=GCo2q4gsbNI&feature=player_embedded#!
-December 17th, 2011-
Max Keiser: "In the US there are limits to how much that a fund can hypothicate. They can leverage up to 140% of customer funds, if in fact it's backstopped with AAA rated -lets say- Treasury Paper"
"Now, what's interesting is that in the city of London there ARE NO limits. There ARE NO ceilings. MF Global of course ran all this scandal through the city of London... So did AIG... So did Lehman Brothers... So did Bernie Madoff... Because the city of London is a regulatory cesspool where all the major global scandals operate."
[KR224] Keiser Report: Exotic pet banking fraudsters
(((Video))) http://maxkeiser.com/2011/12/17/kr224-keiser-report-exotic-pet-banking-fraudsters/
-December 17, 2011-
Max Keiser & co host Stacy Herbert discuss recent headlines relating to: MF Global, Corzine knew, Commodities Futures Modernization Act of 2000 where they legalized derivatives trading, JPMorgan cutting deals outside the Legal Framework.
In the second half of the show, Max talks to Leah McGrath Goodman... http://leahmcgrathgoodman.com/ ...about the price of oil, and MF GLOBAL
This is why we are here this is why you are needed.
http://occupywallst.org/forum/inside-job-documentary/
Share, circulate, educate, inspire.
Barnhardt: MF Bankruptcy Illegally Filed As "Securities Firm" To Give JP-Morgan Priority Status
(((Watch Here)))
http://ml-implode.com/staticnews/2011-12-22_BarnhardtMFBankruptcyIllegallyFiledAsSecuritiesFirmToGiveJPMorga.html
-Dec 21, 2011-
::::::::::::Legality Of MF Global Asset Transfer Questioned::::::::::::
http://www.zerohedge.com/news/guest-post-legality-mf-global-asset-transfer-questioned
-12/21/2011-
Commodity Customer Coalition founder James Koutoulas is requesting that MF Global bankruptcy Judge Martin Glenn investigate three potential legal issues that are said to have occurred in transferring of MF Global assets. The key issues include the fact that JP Morgan was able to purchase MF Global bonds at a discount without any open bidding process and the assets were apparently sold without disclosure to or approval from the U.S. bankruptcy court or trustees. The third issue centers on JP Morgan seeking special favors from the Federal Reserve to receive priority treatment over investor segregated fund accounts.
The first such non-transparent movement of assets occurred when JP Morgan is said to have purchased MF Global’s Sovereign Debt at a significant discount without an open bidding process, paying $0.89 and later selling that debt to investor George Soros for $0.95. No one is going to complain about JP Morgan generating profit. However, purchasing assets of a bankrupt firm without an open bidding process or disclosure to the bankruptcy court and trustees is where JP Morgan may be in trouble, according to Mr. Koutoulas. This sale could be subject to clawback provisions, legal experts speculate. (On December 9, 2011 The Wall Street Journal reported the fact that bonds were moved to KPMG London office, which was the bankruptcy administrator, but at the time the article did not discuss sale details or approval through the bankruptcy process. See "Corzine's Loss May Be Soros's Gain" by Gregory Zuckerman and Dana Cimilluca.) http://online.wsj.com/article/SB10001424052970204319004577086652040716704.html?KEYWORDS=corzine%27s+loss+may+be
The key issue is that such transfers is the bonds were purchased at a discount without open bidding and the process was not disclosed to or authorized by the U.S. Bankruptcy Court, according to Mr. Koutoulas. “Who gave JP Morgan permission to purchase those bonds at a discount without open bidding?”
The second questionable movement of assets is said to have occurred when JP Morgan purchased MF Global’s stake in the London Metals Exchange (LME) without proper disclosure. The event was widely reported at a basic level on November 28, 2011. The larger issue, however, appears to center on the fact that such a transaction was not approved by the U.S. bankruptcy court and trustee......
(((Continue Reading this article Here))) http://www.zerohedge.com/news/guest-post-legality-mf-global-asset-transfer-questioned
MF Global Client Attorney Explains In 1 Sentence Why JP Morgan’s Involvement In MF Global Is Suspicious
http://www.businessinsider.com/james-koutoulas-jp-morgans-involvement-in-mf-global-is-suspicious-2011-12
-Dec. 21, 2011-
"[JP Morgan] wear way too many hats in this situation. Their fingers are all over this. They were a custodian of customer segregated funds, they were a primary lender to MF Global..., they were head of the creditors' committee in bankruptcy court, they're buying customer claims for pennies on the dollar—vulture claims, and it appears that they just may have gotten favorable treatment by purchasing LME stock from MF Global... as well as buying these sovereign debt positions that have turned out to be profitable trades."
(((Watch the CNBC Video Here))) http://video.cnbc.com/gallery/?video=3000063667
(((Read the Full article Here))) http://www.businessinsider.com/james-koutoulas-jp-morgans-involvement-in-mf-global-is-suspicious-2011-12
::::::::::::Congress Sends Letter of Support for MF Customers to SEC & CFTC::::::::::::
http://commoditycustomercoalition.org/
-December 21, 2011-
On behalf of customers of MF Global, five Congressmen from Illinois sent a letter to SEC Chairman Mary Shapiro and CFTC Chairman Gary Gensler in support of the immediate release of 100% of customer funds frozen in the MF Global bankruptcy. The letter states that “every effort should be made to reach this goal, including the liquidation of MF Global’s holding company assets for the benefit of its commodity customers.” It details their view that the CFTC should advise the Court that the failure of MF Global to maintain segregation should not be permitted to “force a haircut on MF Global’s customers.”
::::::::::::Read the Letter Here::::::::::::
http://www.btrtrading.com/Legal/Letter_from_Congress.pdf
Gerald Celente is awesome, that dude is my hero
::::::::::::The Silver Rush at MF Global::::::::::::
http://finance.yahoo.com/news/the-silver-rush-at-mf-global-.html
-December 19th, 2011-
Investors are furious that they can't get back the gold and silver they stashed with the failed brokerage.
It's one thing for $1.2 billion to vanish into thin air through a series of complex trades, the well-publicized phenomenon at bankrupt MF Global. It's something else for a bar of silver stashed in a vault to instantly shrink in size by more than 25%.
That, in essence, is what's happening to investors whose bars of silver and gold were held through accounts with MF Global.
"......IT'S STILL UNCLEAR WHETHER CME will put its commodity-futures customers first—or its shareholders. The company has set aside a $550 million reserve for MF Global customers, and it has cash balances of more than $1.1 billion that it could tap, if needed. But CME Group's chief operating officer, Bryan Durkin, said last week that CME wouldn't guarantee the funds that remain missing from customer accounts at MF Global after they are reimbursed by the bankruptcy trustee. Such a move would be "unwise" and the CME has a "fiduciary responsibility" to its shareholders, Reuters quoted him as saying."
(((Read the entire article Here)))
http://finance.yahoo.com/news/the-silver-rush-at-mf-global-.html
---Jim Willie Interview---
:::::::JP Morgan Crashed MF Global to Avert COMEX Failure, European Derivatives Implosion:::::::
(((Listen Here))) http://bullmarketthinking.com/wp-content/uploads/2011/12/12062011willie.mp3
(for the impatient, JP Morgan and COMEX comes up just a little over halfway through the interview)
---Ann Barnhardt Interview---
:::::::::::::::::This is How The COMEX Crumbles /// "Monumental Market Disorder?":::::::::::::::::
::::::::::::::::::::::::::::::::::::::::::::::::::::(((MF Global Fallout)))::::::::::::::::::::::::::::::::::::::::::::::::::::
(((Listen Here)))
http://www.youtube.com/watch?v=LPPxOP3na5o&feature=player_embedded
-December 16, 2011-
::::::::::::MF Global Wins Permission to Use JPMorgan’s $21 Million::::::::::::
http://www.businessweek.com/news/2011-12-14/mf-global-wins-permission-to-use-jpmorgan-s-21-million.html
-December 14, 2011-
----TheKeiser Report---- "Exotic Pet Banking Fraudsters"
(((Watch It Here))) http://maxkeiser.com/2011/12/17/kr224-keiser-report-exotic-pet-banking-fraudsters/
-December 17, 2011-
Max Keiser & co host Stacy Gerbert discuss Keiser’s GIABO soup for the protesting person of the year and the true cost of bankers.
They also recent headlines relating to: MF GLOBAL & the Commodities Futures Modernization Act of 2000 where they legalized derivatives trading, and -JP MORGAN- cutting deals outside the Legal Framework.
In the second half of the show, Max talks to Leah McGrath Goodman about the price of oil, MF Global.
::::::::::::::::MF Global -TOLD- CME It Used Customer Funds: Timeline::::::::::::::::
http://www.bloomberg.com/news/2011-12-16/mf-global-told-cme-group-it-used-customer-funds-timeline-shows.html
-Dec 16, 2011-
MF Global Holdings Ltd... http://www.bloomberg.com/apps/quote?ticker=MFGLQ:US ...used about $700 million of customer funds to “meet liquidity issues” in the days prior to its bankruptcy, according to CME Group Inc. (CME)... http://www.bloomberg.com/quote/CME:US ...which had auditing authority over the failed futures broker.
CME Group detailed its dealings with MF Global in documents released... http://financialservices.house.gov/UploadedFiles/CME_Group_Response.pdf ...yesterday by the oversight panel of the House Financial Services Committee.
Christine Serwinski, chief financial officer for North America at MF Global, and Edith O’Brien, a treasurer, told Mike Procajlo, an exchange auditor, at around 1 a.m. on Oct. 31 in Serwinski’s Chicago office that the customer money was transferred on Oct. 27 and Oct. 28 and possibly Oct. 26, according to a CME Group timeline...
(((Continue Reading this article Here))) http://www.bloomberg.com/news/2011-12-16/mf-global-told-cme-group-it-used-customer-funds-timeline-shows.html
::::::::::::::::::::Waiting for the Perp Walk::::::::::::::::::::
If stealing $1.2 billion from client accounts and lying to Congress don’t get you thrown into jail, what will it take? Oh Yeah. Peacefully protesting in a public park against criminal bankers who are free to pillage and loot.
http://www.theburningplatform.com/?p=26378
-December 14th, 2011-
This is looking better and better.
I caught a snippet on NPR yesterday as I was driving of an interview of a guy who had $30,000 and could not access it. Did you hear it, by chance?
No, I didn't catch that... is there a link to a related article, or to the interview? So many similar stories out there like that one.. This has ruined an awful lot of families.
Outright theft, reaching into segregated accounts.
http://www.npr.org/2011/12/14/143727507/rancher-discusses-losing-money-with-mf-global
yep, thats where a lot of the stories I've read are coming from too, the farming belt. How many farms will go bust for this, and how much will food prices increase as a result of farms that are left unable to finance their costs of operating in the nearing future. Will crops be lost? Many will not have the luxury of time to wait around in a line, for their money to be ...lost&found. Bills come due and they are unforgiving.
Thank you for that link GirlFriday.
No. Thank you for all of your postings and keeping this front and center where it needs to be. I absolutely love your posts. Keep 'em coming.
:::::::::::::::::::::::::Money Found in Britain May Belong to MF Global:::::::::::::::::::::::::
http://dealbook.nytimes.com/2011/11/28/money-found-in-britain-may-belong-to-mf-global/
-November 28, 2011-
::::::::::::A JP Morgan/MF Global SILVER CONNECTION?::::::::::::
http://maxkeiser.com/2011/11/22/a-jp-morganmf-global-silver-connection/
-November 22, 2011-
JP Morgan made a MASSIVE adjustment of PHYSICAL SILVER into its REGISTERED VAULTS, moving over 1 MILLION OUNCES from eligible into REGISTERED OVERNIGHT!
*JP Morgan adjusted 1,103,280 ounces out of eligible vaults, and into registered vaults.
JPM’s registered inventories TRIPLED from 557,265 ounces to 1,660,545 ounces on Tuesday! Is JPM preparing for substantial delivery demands for December?
The similarity between the 1.1 million ounce adjustment into registered by JPM and the 1.4 million ounces of registered silver that remain not eligible for delivery due to the MF Global fiasco is striking.
Perhaps JPM is moving to prevent a COMEX default due to the 1.4 M ounces of registered physical being unavailable for delivery, and JPM is receiving massive amounts of notices of intents to stand for delivery as everyone realizes they do not want to end up like Gerald Celente
-Dale-
::::::::JP Morgan to buy MF Global’s London Metals Exchange stake::::::::
http://www.reuters.com/article/2011/11/22/us-jpmorgan-lme-idUSTRE7AL1AJ20111122
-Nov 22, 2011-