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 8 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
-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
-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
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
-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?
...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....