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Forum Post: Senate Looked into MF Global Bankruptcy on Tuesday /// Executive Chairman of CME Group says he was told that Corzine was aware of the loans being made from segregated accounts!

Posted 10 years ago on Dec. 13, 2011, 12:42 p.m. EST by MonetizingDiscontent (1257)
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Senate Looked into MF Global Bankruptcy on Tuesday -12/13/2011-

Executive Chairman of CME Group says he was told that Corzine was aware of the loans being made from segregated accounts!

(It was streamed live /// Dec. 13, 2011) http://www.c-span.org/Events/Senate-Looks-into-MF-Global-Bankruptcy/10737426222/

Panel III

Mr. Terrence Duffy:
  • Executive Chairman

  • CME Group

  • Chicago , IL

Mr. James W. Giddens
  • Trustee

  • Securities Investment Protection Act liquidation of MF Global, Inc.

  • New York , NY

Hon. Jill Sommrs
  • Commissioner

  • Commodity Futures Trading Commission

  • Washington , DC

Watch Jon Corzine's Follow Up Testimony On The MF Global Bankruptcy, Accompanied By MF's CFO And COO



Update: the three MF Global stoog... pardon, former executives, are now testifying

Even though he has had several days in which to "review his notes", the follow up testimony by former MF Global CEO Jon Corzine to the Senate Agriculture Committee starting momentarily will be replete with "I don't recalls" and "to the best of my knowledge" and will be largely devoid of all content, suffice to say it was not his intention to break the main law of broker dealers- no commingling. It will be even worse because today he will be joined by MF global's CFO and COO as well, all of whom will be completely clueless once again, and needless to say, shocked, SHOCKED, that they stole billions from their clients.

From the Senate Agri Committee:

On October 31, 2011, MF Global Holdings Ltd. declared bankruptcy – the eighth largest bankruptcy in U.S. history. Since then, federal officials have been unable to find a significant amount of the firm’s customer’s money. It is currently estimated that up to $1.2 billion in customer funds is missing. The Senate Committee on Agriculture, Nutrition and Forestry has jurisdiction over the sort of commodity trading that MF Global was engaged in, and the hearing on December 13 will be a continuation of the Committee’s investigation into the firm’s bankruptcy.

List of Witnesses: http://www.zerohedge.com/news/watch-jon-corzines-follow-testimony-mf-global-bankruptcy-accompanied-mfs-cfo-and-coo



Read the Rules
[-] 1 points by MonetizingDiscontent (1257) 10 years ago

::::JP Morgan Stock Breaks Down On News Company's Role As MF Global Lender To Be Probed::::



[-] 1 points by shadz66 (19985) 10 years ago

@ MD : As usual excellent posts & thanx again. Actually watched Corzine dissembling nervously for a few mins. on C-SPAN thanx to U ;-)

Tho' perhaps u've seen them already, Eps 221 & 222 of RT's "The Keiser Report" have been 2nd to None, espcly both the 2nd halves (221-Satyajit Das & 222-Detlev Schlichter) via : http://rt.com/programs/keiser-report/ - Highly Recommended !!

fiat lux ...

[-] 1 points by MonetizingDiscontent (1257) 10 years ago

Ya, Max Keiser is h i l a r i o u s =) He would make an incredible economic comedian, because of his experience as a TV presenter, radio host, entrepeneur, broadcaster, journalist, former Wall Street broker, the inventor of the virtual specialist technology / prediction markets, Hollywood Stock Exchange, Karmabanque, and Pirate MyFilm (PMF).

Its easy to just laugh at his jokes, but when it comes to his analysis Max Keiser is almost always spot on. Thanks for the heads up on #222!

[-] 1 points by shadz66 (19985) 10 years ago

@ MD : I thought you'd like it ;-) Watching, absorbing, laughing and fuming along with Max, Stacy & Guests is The Only way that I can grasp & keep abreast of "Bankster Larceny", sans an apoplectic fit !!

I recommend Keiser ( http://rt.com/programs/keiser-report/ ) to any and all curious readers out there !!

fiat justitia ...

[-] 1 points by MonetizingDiscontent (1257) 10 years ago

::::::::::::MF Global Cash at JPMorgan Presumed Its Own, Freeh Says::::::::::::


-Dec 12, 2011-

:::::MF Global Cash at JP Morgan 'Presumed Its Own' So It Can Pay the Bankruptcy Trustees:::::


(Jesse's Café Américain) So what is MF Global going to do with that $25 million in cash held in their account at JPM?

Presumably it will be used to pay the Bankruptcy Trustees and lawyers who decided that it belongs to MF Global and not the cheated customers whose accounts have been looted.

JPM apparently cut a deal with the Trustee saying they could have the cash if MFG granted JPM a lien on ALL the company's assets.

So much for the superior claim of the customers as asserted by the CFTC. http://jessescrossroadscafe.blogspot.com/2011/12/cftc-issues-clear-statement-mf-global.html

This whole notion of the 'missing money' is puzzling because with the new banking laws it seems almost impossible that there is not an electronic trail of bank transfer in any size, much less over a billion. What happened to the anti-moneylaundering provisions?

This is not a routine bankruptcy. This is a crime scene.

P.S. After the bell the CME witness contradicted Corzine's testimony saying that an employee told him he knew of the transfers. This will be interesting.


[-] 1 points by MonetizingDiscontent (1257) 10 years ago

Executive Chairman of CME Group says he was told that Corzine was aware of the loans being made from segregated accounts!

[-] 1 points by FrogWithWings (1367) 10 years ago

Sounds like more people will end up being found in dumpsters.

[-] 1 points by MonetizingDiscontent (1257) 10 years ago

yikes, either that or ...maybe they will try to pin e v e r t h i n g on the person who told Duffy that Corzine was aware of those loans... try to say that the individual acted alone. Get out of jail free card?

[-] 1 points by MonetizingDiscontent (1257) 10 years ago

Who Gave Permission To A Bankrupt MF Global To Sell Italian Bonds To JPM At A 5% Discount To Market Value?



We already knew previously that shortly after it filed for bankruptcy, George Soros bought $2 billion in Italian bonds from the bankrupt MF Global. One thing we did not know was the terms of the purchase.

Today, the WSJ has disclosed... http://online.wsj.com/article/SB10001424052970204336104577094702485491024.html ...another facet of the bankruptcy which like Lehman will expose gigabytes of dirt on the corrupt US financial system. Namely, that after liquidating, MF sold Italian bonds - the culprit that ultimately led to the bank's bankruptcy - to none other than JP Morgan and "one large hedge fund."So far so good. Where it gets disturbing is that as the WSJ discloses,

"buyers paid about 89 cents on the dollar for the Italian bonds, compared with a market price of about 94 cents at the time, according to the trader who bought them...Today, those bonds trade at more than 96 cents, according to Tradeweb."

Our question is first, why did the bankrupt MF Global estate proceed to unload post-filing assets and under whose discretion: after all the company had entered bankruptcy, and it is up to the estate, which includes bondholders and other stakeholders to determine what assets and under what conditions, can be liquidated.

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.

Secondly, and perhaps just as important, who on the estate agreed to give JPM a 5% explicit discount to what the article notes was a fair price that is 5% higher and which by definition would have had bidders at that price.

We hope someone in the Senate will take a quick look at this note, and the related WSJ article, and ask Messrs Corzine et al to provide some much needed clarity on this topic.

[-] 1 points by FrogWithWings (1367) 10 years ago

Well, do you think ONE SINGLE person will be charged and arrested, much less prosecuted and convicted?

[-] 1 points by FrogWithWings (1367) 10 years ago

I'm waiting for them to also go through the motions of making crime illegal for bankers too. Apparently, despite the SEC telling congress that insider trading laws do indeed apply to them, they are going through the ceremony and pomp of actually pushing legislation through specifically making it illegal for them. Smoke and mirrors! Greatest show on earth!

[-] 1 points by dantes443322 (148) 10 years ago

MF is the perfect name.

[-] 1 points by MonetizingDiscontent (1257) 10 years ago

If the shoe fits....

[-] 1 points by yarichin (269) 10 years ago

Just another Ponzzi Scheme. Just like default swaps and Federal Reserve Notes. Jail them until the money is found. They know where it is.

[-] 1 points by MonetizingDiscontent (1257) 10 years ago

While the committee breaks, im checking this article out

Greek Bank Run Hits Record: Unprecedented €6.8 Billion In Deposits Pulled From Greek Banks In October



While it is no surprise that Greek bank deposits are rapidly fleeing both the country's banking system, and the country, following September's record outflow of €5.5 billion... http://www.zerohedge.com/news/greek-bank-deposits-plunge-%E2%82%AC55-billion-september-biggest-monthly-drop-ever ...the situation just got far worse, after October data... http://www.bankofgreece.gr/Pages/en/Statistics/monetary/deposits.aspx ...reveals that a record €6.8 billion was taken out of corporate and household deposits in one month.

This is unprecedented 4% of all of the country's period end deposits of €176 billion at the end of October, and represents a €33 billion decline, or almost 20%, of the country's deposit base in 2011 which started with €210 billion in bank cash buffer, and is now down to €176 billion.

Furthermore, according to recent article in the German press, this number has supposedly ramped even more in recent months to double digit withdrawals, an event which means the Greek financial system is completely and totally finished. Because as history always shows there is no such thing as a bank run that gets fixed on its own. One thing is certain: November data, and then December, and so forth, will only be worse and worse and worse, until the whole country finally implodes....