MF Global Money Found in Britain?

CNBC ^ | 11/29/11 | Ben Protess and Azam Ahmed

[Libloather]

MF Global Money Found in Britain?
By: Ben Protess and Azam Ahmed
The New York Times
Published: Tuesday, 29 Nov 2011 | 7:01 AM ET

About $200 million in customer money that vanished from MF Global is believed to have surfaced at JPMorgan Chase 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 [MFGLQ 0.00 --- UNCH (0) ] last chaotic days, the brokerage firm overdrew an account at JPMorgan [JPM 29.16 0.68 (+2.39%) ], 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.

[mewzilla]

I just hope that someone is looking to see if any taxpayer money is being funneled in and used to make good on MFG’s losses.

[ThePatriotsFlag]

And the reason Corzine isn’t doing the perp walk is?

[mewzilla]

Other than the fact he’s a well-connected ‘Rat? Well, the wheels of justice grind slowly.

[ken5050]

I don’t undwerstand why it is taking so long for the details to surface...wire transfers are a matter of record, and easily available...the investigators, as soon as they got into the firm, were able to trace EVERY transfer out of MF Global..they know where it all went..

[mewzilla]

I’m not a forensic accountant, but I’ve heard stories that make my brain hurt. It could take a while to find out where the money went, especially if was laundered over and over again. My greater concern is that there will be an attempt to replace the missing money with someone else’s. IOW, the taxpayers’.

[Joe Miner]

The idea they don’t know where the money went is laughable. The money went to pay off the margin calls in the hopes they could squeak on by and either sell the business or their lenders calmed down about their positions and the crisis passed. Now the lenders like JPM have the money and have no intention of giving it back unless it is clawed back.

[Why So Serious]

And the reason Corzine isn’t doing the perp walk is?

Because he is a FOB [Friend of Barack's]

And what is all this BS that we just "found" another $200 million. Two weeks ago they "found" $550 million at JP Morgan, now another $200 million in the UK .. who "forgets" where they put $750 million? And don't they ledger this stuff. I am in the futures business. There is a lot that does not make sense here!

[mewzilla]

Meanwhile.....

Corzine Pushed Bet on Europe Debt to $11.5B

[chimera]

And don't they ledger this stuff. I am in the futures business.

If those were legitimate transactions there should be records out the wazoo. The FBC requires records for all sorts of banking transactions. In a previous life, I was a partner in a commodities scale trading venture. We had file drawers full of records in case the CFTC ever decided to take a look. Sure, I can see not having the books balance by a few dollars here or there, but hundreds of millions that "can't be found"? Come on, that's pretty hard to believe, even if 'Rats are involved. I agree, something ain't right. The question is, will anyone do anything about it? I have my doubts with this bunch of crooks (Holder, et al.) in charge.

[Eric in the Ozarks]

For the same reason crooked members of congress don’t...

[Stand W]

Much of this money will never be located (on purpose) to fund the communists re-election bid.

[Stand W]

“And the reason Corzine isn’t doing the perp walk is?”

For the same reason that Barney Frank is retiring to a fat pension and yummy speaking fees instead of the prison cell he so richly deserves.

[jneesy]

if we had a read media corzine wouldnt be able to show his face

[ken5050]

IMHO, there is only one possible reason why they're holding back the info on where the $$ went..they are trying to apply pressure on the banks that received the funds to voluntarily return them.

It sounds like most of the $$ went to counterparties overseas, that are much less susceptible to pressure..but I can't believe that any bank(s) would knowingly take a billion $ hit..

[IL Republican]

I’m against almost all bailouts, except this time, it may be necessary to protect the integrity of the futures markets.

We ALL depend on future markets every day. If you buy gas, food, buy any product made out of raw materials, you are affecting futures.

Let’s look at gas, as it is the commodity that virtually everyone uses (even if you don’t own a car, you buy goods transported by vehicles burning gas).

Buyers of gas will lock in profitable levels to buy it far into the future. It is there way of locking in a profit, and allowing them to run on a tight margin. IF seg funds are not made whole and the futures industry suffers due to lack of confidence, it is possible for the futures cease trading.

IF that happens, we go back to a spot trade system. The buyer of gas has to buy at the price on the day he wants delivery. He does not know this very far ahead of time. As a result, he needs to keep a larger margin to help offset the times that he is buying more expensive gas.

At the end of the day, futures trading is necessary. Maintaining the integrity of the trade is a must.

I favor a tax payer “loan” to make the seg funds whole. Ask all FCM’s to contribute a portion to a fund to re-pay the tax payer, and crack down on laws that allow seg funds to be invested in bonds. Limit seg funds to cash only, and require 100% be on deposit at the clearing houses.

[veracious]

My bet is the same: much of this money, TARP money, bailout money and every other multi-trillion rescue package money are headed indirectly, covertly, subtley into special funds to disperse to 0 and other world-gov minions.

Hurry up and know it, folks; were not in Kansas any more. Most USAians are in _way_ over their heads.

[chimera]

I have a feeling a lot of that pressure will be political, as much as it can be applied. We know hoe closely Corzine is tied to Obama. And that will make any kind of legitimate inquiry almost impossible, much less holding anyone to account. Remember Hillary’s $100K cattle futures deal? That whole thing was likely crooked but no one would do a decent investigation. The message was clear to any and all: don't go there. Anyone who had any jurisdiction in the matter wouldn't touch it with a ten-foot cattle prod. They “knew better”.

[ken5050]

Not sure if I agree with that, though I understand where you're coming from..it's a much different era now..news and info are instantly available..everywhere..Hilalry's stuff was small, closely held..these are all matter of publci record, and are available.

Also, Dems are embracing OWS..they can't defend Corzine at the same time...

Corzine has been quieter than Bernie Madoff..which tells me that he is in BIG trouble..the Dems and Obama are in a box...would Obama pardon Corzine after the election? If Obama loses..you betcha.. Remember Marc Rich?...Dems are shameless..especially if Corzine knows where the bodies are buried..

[chimera]

Well, I just have a sense that Obama and the 'Rats will be working behind the scenes on behalf of Corzine. If they can't protect him entirely then I think they'll soften the fall. I can easily see a scenario where he skips to the Bahamas or Switzerland and very little effort is made to extradite him. That gives Obama and the 'Rats some cover ("What can we do? We don't have jurisdiction...").

But maybe in a sense you're right, these are different times and a different bunch of 'Rats. Still as corrupt, but maybe a different style of corruptness. The Clintons just threw people away and trashed them (or worse). Look at what they did to Billy Dale simply for sitting in a chair that Hillary wanted "her people" to be in. Obama may not be as blatant, but I think he's at least as ruthless, maybe more so, since his is the Chicago Way.