Forum Post: CME Executive Chairman Terry Duffy Throws Jon Corzine Under The Bus, Implies The "Honorable" Governor Lied Under Oath /// Presenting The Three Unscripted Sentences That May Have Cost Jon Corzine His Freedom
Posted 12 years ago on Dec. 9, 2011, 8:46 p.m. EST by MonetizingDiscontent
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CME Executive Chairman Terry Duffy Throws Jon Corzine Under The Bus, Implies The "Honorable" Governor Lied Under Oath
http://www.zerohedge.com/news/cme-chairman-terry-duffy-throws-jon-corzine-under-bus
-12/13/2011-
An auditor with CME Group was told that former MF Global chief Jon Corzine knew about loans backed by customer segregated accounts that were made to a European affiliate of the firm, a CME executive said on Tuesday.
Presenting The Three Unscripted Sentences That May Have Cost Jon Corzine His Freedom
-12/13/2011-
Today, in advance of their sworn testimony, each witness to the Senate Agricultural Committee's MF Global hearing was requested to disclose what their prepared remarks would be. Sure enough, CME executive chairman Terry Duffy did that, and his prepared testimony can be found here. (see the article for link to pdf)
In and of itself there was nothing unexpected about said speech, the relevant section of which has been transcribed below. Where things got very ugly for Corzine, is when Duffy literally veered from the script, and added three unexpected sentences, catching everyone in the committee off guard (including those who had given up on the testimony which came just after Corzine's) and which according to most news wires could have buried Corzine's defense strategy, exposing him for a liar under oath, and potentially costing him his freedom.....
The video of the relevant 2 minutes is attached below
(((Video))) http://www.youtube.com/watch?v=JUro9-0aowE&feature=player_embedded
(((Continue reading the rest of this article for the highlighted three sentences, Here))) http://www.zerohedge.com/news/presenting-three-unscripted-sentences-may-have-cost-jon-corzine-his-freedom
The Gold "Rehypothecation" Unwind Begins: HSBC Sues MF Global Over Disputed Ownership Of Physical Gold
-12/09/2011-
That paper gold, in the form of electronic ones and zeros, typically used by various gold ETFs, or anything really that is a stock certificate owned by the ubiquitous Cede & Co... (read about the DTCC here http://zerohedge.blogspot.com/2009/06/biggest-financial-company-you-have.html ) ...is in a worst case scenario immediately null and void as it is, as noted, nothing but ones and zeros on some hard disk that can be formatted with a keystroke, has long been known, and has been the reason why the so called gold bugs have always advocated keeping ultimate wealth safeguards away from any form of counterparty risk.
Which in our day and age of infinite monetary interconnections, means virtually every financial entity. After all, just ask Gerald Celente what happened to his so-called gold held at MF Global, or as it is better known now: "General Unsecured Claim", which may or may not receive a pennies on the dollar equitable treatment post liquidation.
What, however, was less known is that physical gold in the hands of the very same insolvent financial syndicate of daisy-chained underfunded organizations, where the premature (or overdue) end of one now means the end of all, is also just as unsafe, if not more. Which is why we read with great distress a just broken story by Bloomberg... http://www.bloomberg.com/news/2011-12-09/hsbc-sues-mf-global-brokerage-over-stored-gold-silver-bars-1-.html ...according to which HSBC, that other great gold "depository" after JP Morgan... (and the custodian of none other than GLD http://www.zerohedge.com/news/some-observations-bob-pisanis-visit-glds-vault ) ...is suing MG Global "to establish whether he or another person is the rightful owner of gold worth about $850,000 and silver bars underlying contracts between the brokerage and a client."
The notional amount is irrelevant: it could have been $0.01 or $1 trillion: what is very much relevant however, is whether or not MF Global was rehypothecating (there is that word again), or lending, or repoing, or whatever you want to call it, that one physical asset that it should not have been transferring ownership rights to under any circumstances.
Essentially, this is at the heart of the whole commingling situation: was MF Global using rehypothecated client gold to satisfy liabilities? The thought alone should send shivers up the spine of all those gold "bugs" who have been warning about precisely this for years. Because the implications could be staggering.
Probably the core primary consequence of this discovery, which obviously has a factual basis, or else it would not lead to an actual lawsuit between two "reputable" firms (aka ponzi participants), is whether gold in the GLD warehouse, supervised by HSBC, is truly theirs, or has it all been hypothecated from some other broker who never really had the asset or the liquidity, and so on in what effectively can be an infinite chain of repledging one asset to countless counterparties. Because if there is on cockroach...
Suffice to say, expect either a prompt settlement in this lawsuit, or a fervent denial by all parties involved that any gold was misplaced. Because here is the punchline: each physical gold or silver bar has a unique deisgnator that should never be replicated, yet this is precisely what happened to lead to the lawsuit!
In a non-banana world, there should never be any debate over who owns a given physical asset, as replicated ownership (note - not liens) effectively means someone stole the gold (or there was counterfeiting involved) and was never caught... until MF Global finally expired of course.
So in other words, is this the eureka moment when everyone realizes that any gold, be it paper or physical, is either a irrelevant electronic binary claim held in some semiconductor, or at best an asset in some vault, that the brokerage next door suddenly also has claims over?.....
(((Continue reading this article Here))) http://www.zerohedge.com/news/gold-rehypotecation-unwind-begins-hsbc-sues-mf-global-over-disputed-ownership-physical-gold
MF Global and the Great Wall St Re-Hypothecation Scandal
-12/7/2011-
(Business Law Currents) A legal loophole in international brokerage regulations means that few, if any, clients of MF Global are likely to get their money back. Although details of the drama are still unfolding, it appears that MF Global and some of its Wall Street counterparts have been actively and aggressively circumventing U.S. securities rules at the expense (quite literally) of their clients.
MF Global's bankruptcy revelations concerning missing client money suggest that funds were not inadvertently misplaced or gobbled up in MF’s dying hours, but were instead appropriated as part of a mass Wall St manipulation of brokerage rules that allowed for the wholesale acquisition and sale of client funds through re-hypothecation. A loophole appears to have allowed MF Global, and many others, to use its own clients’ funds to finance an enormous $6.2 billion Eurozone repo bet.
If anyone thought that you couldn’t have your cake and eat it too in the world of finance, MF Global shows how you can have your cake, eat it, eat someone else’s cake and then let your clients pick up the bill. Hard cheese for many as their dough goes missing....
(((Continue Reading this article Here))) http://newsandinsight.thomsonreuters.com/Securities/Insight/2011/12_-_December/MF_Global_and_the_great_Wall_St_re-hypothecation_scandal/
By Christopher Elias (UK)
Money Found in Britain May Belong to MF Global at JPMorgan Chase
By BEN PROTESS and AZAM AHMED | New York Times
http://finance.yahoo.com/news/money-found-britain-may-belong-115508178.html
-November 28, 2011-
About $200 million in customer money that vanished from MF Global is believed to have surfaced at JPMorgan Chase... http://dealbook.on.nytimes.com/public/overview?symbol=JPM&inline=nyt-org ...in Britain, according to people briefed on the matter. The discovery could be the most significant breakthrough in a monthlong hunt for the missing funds.
During MF Global's last chaotic days, the brokerage firm overdrew an account at JPMorgan, according to another person who is close to the matter. Some investigators now believe the firm used customer funds to patch at least some of the hole, which would have been a significant breach of federal law.
MF Global transferred the roughly $200 million in the days before the firm filed for bankruptcy, said the people, who requested anonymity because the investigation was incomplete.
Some investigators suspect that the transfer to JPMorgan was the first major misuse of customer money at MF Global, the commodity brokerage powerhouse once run by Jon S. Corzine, the former Democratic governor of New Jersey. Authorities are also looking into whether JPMorgan initially questioned the source of the cash and sought proof from MF Global that it was complying with regulations, one of the people said.
The authorities believe MF Global failed to give JPMorgan full documentation for the cash, the people briefed on the matter said. But the bank's concerns hardly mattered because the money had already been transferred to the account in Britain. It is unclear whether investigators can recover the $200 million.
Representatives for both MF Global and JPMorgan declined to comment. A spokesman for the MF Global trustee, James W. Giddens, declined to comment.
JPMorgan has long been thought to hold some of the money that disappeared from MF Global. As one of MF Global's primary banks, JPMorgan has been a persistent presence in the firm's demise and the messy aftermath. The bank loaned to MF Global until its waning days and has been a vocal and tenacious presence as a creditor during the firm's bankruptcy hearings....
(((Continued Here))) http://finance.yahoo.com/news/money-found-britain-may-belong-115508178.html
:::::Corzine Grilled Over MF Global Collapse After Witness Suggests Knowledge of Misused Funds:::::
'Democracy Now!' - A daily independent global news hour with Amy Goodman & Juan Gonzalez
(((Video))) http://www.democracynow.org/2011/12/14/corzine_grilled_over_mf_global_collapse
Former New Jersey governor and U.S. Senator Jon Corzine testified Tuesday on Capitol Hill about his brief stint at the helm of the failed commodities and derivatives brokerage house MF Global, which in October became the largest failure on Wall Street since the collapse of Lehman Brothers in 2008. After MF Global went bankrupt, regulators discovered that up to $1.2 billion in customer funds that should have been kept segregated were missing. Corzine says he never directed anyone at MF Global to misuse the funds, but a witness testified that Corzine was aware of loans that may have used customer money. We speak with Nomi Prins, a former investment banker turned journalist. "We’re listening to someone try to dodge his way out of responsibility and accountability, which is very much what all the CEOs have done through the subprime crisis and through past crises," Prins says.
"When you see 5,500 arrests across this country for the Occupy movement and you see zero on the part of CEOs and senior executives from Wall Street who took trillions of dollars out of our economy, out of the European economy, [and] are going around the world doing the same thing to Asia now, it is absolutely heinous."
obama and Corzine are close pals.
Was The "Collapse" Of MF Global Premeditated? A Conspiracy Theory Thought Experiment
http://www.zerohedge.com/news/was-collapse-mf-global-premeditated-conspiracy-theory
-12/13/2011-
Derivatives, unlike stocks where the equation has always been murky, are for the most part zero-sum products: one's gain is someone else's loss (net of commissions) unless of course the entire system collapses in a daisylinked chain reaction (think AIG). And MF Global's bankruptcy, by dint of being a derivatives broker, and the resulting massive losses to both shareholders and clients, means that some entity, on the other side of all these failed bets, made off like a bandit.
Which bring us to a rather disturbing theory proposed by Walter Burien of CAFR1.com who has floated the rather the chilling idea, and what some may call an outright conspiracy theory, that by scuttling MF, Corzine effectively helped some shell company (or companies) which were controlled by a "cabal" of his closest confidants (we will let readers come up with their own theories who the former CEO of Goldman Sachs may have been close with) to make the offsetting profit that resulted from the accelerated and massive losses borne by MF's stakeholders in the vicious liquidation.
As Burien says: "A government and media cover up would just focus on MFG's loss. A true and open investigation would be focused on "who" took the other side of the coin; the profit."
(((Continue reading this article Here)))
http://www.zerohedge.com/news/was-collapse-mf-global-premeditated-conspiracy-theory
:::::::JP Morgan Stock Breaks Down On News Company's Role As MF Global Lender To Be Probed:::::::
http://www.zerohedge.com/news/jp-morgan-stock-breaks-down-news-companys-role-lender-be-probed
-12/13/2011-
Who Gave Permission To A Bankrupt MF Global To Sell Italian Bonds To JPM At A 5% Discount To Market Value?
http://www.zerohedge.com/news/who-gave-permission-bankrupt-mf-global-sell-italian-bonds-jpm-5-discount-market-value
-12/13/2011-
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,
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.
Mormons Become Victims in $50 Million Scam to Sell Gold Bullion
Affinity Fraud
"While their scam was puny compared with Madoff’s, which netted him 150 years in prison, it had much in common with the largest Ponzi scheme in history and other so-called affinity frauds. Such cons prey on like-minded or culturally connected investors whose trust blinds them to the implausible in the pursuit of profit.
The SEC has filed 86 enforcement actions involving Ponzi schemes since the beginning of 2006, according to data compiled by NERA Economic Consulting, a New York-based research firm. The number more than tripled to 36 in the first six months of this year from 11 in 2006.
Many of the scams, in which money from new investors is used to repay others or siphoned off by the promoters, targeted religious or ethnic groups."
I would expect to see more of this.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=an7Pm3hkmauw
::::::::::::'The Bears' Explain MF Global::::::::::::
http://www.youtube.com/watch?feature=player_embedded&v=jLt05sN7vK0
This video explains causal links between OTC derivatives, the financial crisis of 2008, Alan Greenspan, Robert Rubin, Larry Summers, Jon Corzine and MF Global.
:::::::::::::::The Denials Begin: Interactive Brokers Is First To::::::::::::::::
::::::::Claim It Has Not Engaged In Commingling Rehypothecation::::::::
http://www.zerohedge.com/news/denials-begin-interactive-brokers-first-claim-it-has-not-engaged-commingling-rehypothecation
-12/11/2011-
(Tyler Durden) Now that the rehypothecation bogeyman... http://www.zerohedge.com/news/why-uk-trail-mf-global-collapse-may-have-apocalyptic-consequences-eurozone-canadian-banks-jeffe ...has been let loose, and the question of just how many paper (and apparently physical http://www.zerohedge.com/news/gold-rehypotecation-unwind-begins-hsbc-sues-mf-global-over-disputed-ownership-physical-gold ) ...assets have been double, triple, and n-counted http://www.zerohedge.com/news/shadow-rehypothecation-infinte-leverage-and-why-breaking-tyrrany-ignorance-only-solution (where n can be a number up to "infinity") by the infinitely daisy-chained modern global financial system in which one's liability is someone else's asset....apparently up to infinity times, the next logical step was for the firms named in the original Reuters article... http://newsandinsight.thomsonreuters.com/Securities/Insight/2011/12_-_December/MF_Global_and_the_great_Wall_St_re-hypothecation_scandal/ ...to step up and begin denials they had anything to do with anything.
Sure enough, below is the first (of many) such response, by Interactive Brokers, claiming it has been greatly misunderstood and unlike MF Global, it has done nothing wrong at all. Of note is that IB was simply one of many brokers mentioned in the Reuters piece, where we read that:
"Engaging in hyper-hypothecation have been Goldman Sachs ($28.17 billion re-hypothecated in 2011), Canadian Imperial Bank of Commerce (re-pledged $72 billion in client assets), Royal Bank of Canada (re-pledged $53.8 billion of $126.7 billion available for re-pledging), Oppenheimer Holdings ($15.3 million), Credit Suisse (CHF 332 billion), Knight Capital Group ($1.17 billion),Interactive Brokers ($14.5 billion), Wells Fargo ($19.6 billion), JP Morgan($546.2 billion) and Morgan Stanley ($410 billion)."
(((Continue Reading Here))) http://www.zerohedge.com/news/denials-begin-interactive-brokers-first-claim-it-has-not-engaged-commingling-rehypothecation
:::::::::::::::::::::::::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-
Corzine is guilty, but another Madoff like fall guy to keep the grand ponzi scheme going. While they chase their tails some more and this is allowed to continue it will grow more and more. Eventually it will collapse. Eventually it will be game over when the quadrillions in false derivatives and hedges are exposed. There is no money, just debt/credit. Money has not existed since 1933. USA was bankrupt and created money based on what...debt...assets...property..futures....we are the derivatives, the hedges, our property and taxes forever and then some. The whole US economy is a ponzi scheme. There is no fix, we need to start over so it has to crash. Stop bailing them out they made it worse! This is bull. The IRS will audit you and me over petty deductions and crush us. But the Federal reserve bank, and its gangs and banks that borrow this fiat money - we can't get near them with a 10' pole. It is time for the criminals to be brought to justice, expose the system and those who are managing it. The time has come the Federal Reserve is as Federal as Federal Express, a private cartel entity. NO MORE FED Real gold and silver backed money.
This is excellent stuff, too bad its over the head of 99% of the folks here.
I would like to summarize all this shit for the masses. Essentially the only SAFE gold is that you bury in your yard. For maybe 10+ years now the masses have been sold paper gold, or certificates that say's "Our bank will keep your gold safe, and has your name on it", .. Well imagine what's happened all that PAPER, like all paper, like the US-DOLLAR is just what it is worthless-paper, barely worth the paper its printed on.
GLD is the number one phony paper-certificate traded today, and as this article points out, like the contrary have long proclaimed it could all be phony. HSBC is the biggest bank in the world with offices every where even the Chinese keep their GOLD at HSBC, but HSBC subcontracted this 'GOLD' to be kept with a 3rd party, now it turns out that everything is gone.
Ok, now I'll explain the issue here, is that post Raygun 1980's the USA ran a 'confidence scam' and got the whole world to invest in WALL-STREET phony-paper and everybody got rich, especially the frim that control's ALL Goldman-Sachs, the folks who own OBAMA.
Now the whole world is finding out that the US government has robbed the 1%, any reason that OWS exists? Ahh I'll tell you why, cuz the OWS is a front for Goldman-Sachs, and they want the majority to feel good about the 1% losing their money.
Why didn't they rob the 99% cuz you ain't got shit, all bank robbers go where the money is.
Ok, so now it unravels and world confidence in wall-st collapses and the US/DOLLAR government.
The 99% in the USA is fucked.
::::::::::::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-
lol, check this ad out for Chef -JON's- Smart Lids
::::::::::::ASS SEEN ON TV::::::::::::
http://maxkeiser.com/2011/12/09/ass-seen-on-tv/
-December 9, 2011-
Here's the print version of that testimony Today, in advance of their sworn testimony, each witness to the Senate Agricultural Committee's MF Global hearing was requested to disclose what their prepared remarks would be. Sure enough, CME executive chairman Terry Duffy did that, and his prepared testimony can be found here. In and of itself there was nothing unexpected about said speech, the relevant section of which has been transcribed below. Where things got very ugly for Corzine, is when Duffy literally veered from the script, and added three unexpected sentences, catching everyone in the committee off guard (including those who had given up on the testimony which came just after Corzine's) and which according to most news wires could have buried Corzine's defense strategy, exposing him for a liar under oath, and potentially costing him his freedom. The video of the relevant 2 minutes is attached below.
First: here is what the Duffy prepared remarks should have been:
auditors returned on Sunday, October 30th because we learned from the CFTC that the draft segregation report for Friday, October 28th, which had been provided to the CFTC that day, showed a $900 million dollar shortfall in segregation caused by an “accounting error.” Our auditors, working with the CFTC, devoted the rest of the day and night Sunday to find the so-called accounting error. No such error was ever found. Instead, at about 2 am Monday morning, MFG informed the CFTC and CME that customer money had been transferred out of segregation to firm accounts. Transfers of customer funds for the benefit of the firm constitute serious violations of our rules and of the Commodity Exchange Act. MFG was taken over by a SIPC Trustee on Monday. However, before the SIPC Trustee stepped in Monday, the segregation report for Thursday, October 27th, which had shown not only full segregation compliance but also $200 million in excess segregated funds, was corrected by MFG to show a deficiency of $200 million in segregated funds. Apparently based on MFG’s segregation reports, additional transfers out of segregation occurred on Friday.
And here is what they ended up being: revised text in bold.
auditors returned on Sunday, October 30th because we learned from the CFTC that the draft segregation report for Friday, October 28th, which had been provided to the CFTC that day, showed a $900 million dollar shortfall in segregation caused by an “accounting error.” Our auditors, working with the CFTC, devoted the rest of the day and night Sunday to find the so-called accounting error. No such error was ever found. Instead, at about 2 am Monday morning, MFG informed the CFTC and CME that customer money had been transferred out of segregation to firm accounts. After receiving this information CME remained at MF Global while MF Global attempted to identify funds that could be transferred into segregation to reduce or eliminate the discrepancy. A CME auditor also participated in a phone call with senior MF Global employees wherein one employee indicated that Mr. Corzine knew about the loans that had been made from the customer segregated accounts. CME Group has provided this information, the names of these individuals to the DOJ and CFTC who are investigating these matters. Transfers of customer funds for the benefit of the firm constitute serious violations of our rules and of the Commodity Exchange Act.... etc.
The only question we have is: why?
yep. thst was quite a deviation. hmm, yes... why? Perhaps they will pin everything on this one individual who indicated that Corzine knew about these loans that had been made from the customer segregated accounts. Maybe they will say he did it alone. (((lmao)))
Maybe this is Jons get out of jail free card?
I've been reading about 1929 and dis-guy Richard Whitney (August 1, 1888 – December 5, 1974) was an American financier, president of the New York Stock Exchange from 1930 to 1935, and a convicted embezzler.
While Richard Whitney was assumed to be a brilliant financier, he in fact had personally been involved with speculative investments in a variety of businesses and had sustained considerable losses. To stay afloat, he began borrowing heavily from his brother George as well as other wealthy friends, and after obtaining loans from as many people as he could, turned to embezzlement to cover his mounting business losses and maintain his extravagant lifestyle. He stole funds from the New York Stock Exchange Gratuity Fund, the New York Yacht Club (where he served as the Treasurer), and $800,000 worth of bonds from his father-in-law's estate.
http://en.wikipedia.org/wiki/Richard_Whitney_%28financier%29 he finally got kicked off the board in 1938. Amazing repeats of history going on.
Very funny ---------but scary.