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No MF Global customer cash in JPMorgan account: trustee (RAT Corzine not behind bars yet)
Reuters ^ | 2/17/12 | Nick Brown

Posted on 02/19/2012 3:44:28 PM PST by Libloather

No MF Global customer cash in JPM account: trustee
By Nick Brown
Fri Feb 17, 2012 5:11pm EST

(Reuters) - The trustee managing the assets of bankrupt MF Global Holdings Ltd said none of the roughly $26 million being used to fund the futures brokerage in Chapter 11 is part of a $1.6 billion shortfall in customer accounts.

**SNIP**

"After an exhaustive investigation - which included the review of volumes of bank statements and an extensive population of cash transaction activity during October 2011 - the trustee does not believe that any of the cash in the JPM account ... represents misdirected customer property," Freeh said.

MF Global, once headed by former New Jersey Governor Jon Corzine, collapsed amid fears about its exposure to risky European debt. Corzine stepped down on November 4.

Giddens is conducting a broader investigation into where customer money ended up. His spokesman on Friday said that investigation is ongoing.

"We don't disagree with the report about what is the MF Global Holdings Trustee's limited inquiry into an account," spokesman Kent Jarrell said. "In our effort to identify and return property to former customers, our investigation continues into accounts at relevant banks and depositories."

(Excerpt) Read more at reuters.com ...


TOPICS: Business/Economy; Crime/Corruption; Extended News; Government; News/Current Events
KEYWORDS: cash; corzine; global; mf; mfglobal
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"Everyone's freaking out today," Koutoulas told Reuters. "Customers, people calling me, or going on Twitter."

Visit Jon at his house.

1 posted on 02/19/2012 3:44:36 PM PST by Libloather
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To: Libloather

This whole “missing” $26 billion reminds me of the scene from Animal House where Otter is telling Flounder not to worry about the damage to his brother’s car, and that they’ll all swear that it was parked outside the prior evening, and the next morning... it was gone.


2 posted on 02/19/2012 3:54:26 PM PST by SpaceBar
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To: Libloather

If justice was done he wouldn’t have a house other than the Big House.


3 posted on 02/19/2012 3:54:38 PM PST by Mark (Don't argue with my posts. I typed while under sniper fire..)
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FR Needs New Servers
Please Donate Toward The Purchase And Keep FR Up And Running!


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4 posted on 02/19/2012 3:56:41 PM PST by DJ MacWoW (America! The wolves are here! What will you do?)
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To: Libloather

The trail will lead back to some of the big banks. And it will never be exposed.


5 posted on 02/19/2012 4:11:43 PM PST by Revel
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To: Libloather

MFG is missing 1.6 billion dollars (these are the latest numbers). Everything is done by computer, and every withdraw from a customer account goes to another account are monitored. How can the trustees (who have a conflict of interest on this matter, they represent the stockholders in this bankruptcy vs the interest of the customers who are last on the list of creditors) not find who illegal hit the keyboard to make the computer withdraw from customer accounts. Someone had to hit the keyboards that made the illegal withdraws. Some clerk ordered by his boss is still guilty of a crime. Arrest him and sweat him to talk. That is how real investigations work if everyone in management creates a wall of silence.
Don’t know where the money went. What a crock, unless Corzine did his transactions with suitcases full of cash.


6 posted on 02/19/2012 4:18:44 PM PST by Fee
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To: SpaceBar

The more applicable phrase from that scene is Otter tells flounder “you f#!ked up, you trusted us”. The customers played the part of flounder perfectly only it ain’t funny and the POS criminal democrat will probably walk, completely free.


7 posted on 02/19/2012 4:28:36 PM PST by RJS1950 (The democrats are the "enemies foreign and domestic" cited in the federal oath)
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To: SpaceBar

Oh. Don’t worry. Even if it’s in a billion pieces, they can glue it.

Glue does marvelous things these days. You could swear something was whole cloth and made out of it, but no! It’s been glued together, like some marvelous mess, and no one will ever find a thing!


8 posted on 02/19/2012 4:34:53 PM PST by combat_boots (The Lion of Judah cometh. Hallelujah. Gloria Patri, Filio et Spiritui Sancto.)
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To: Libloather
Freeh is NOT a neutral. He is highly compromised, and is fronting for JPM and other looters. This is a legal position he is taking, to throw the hounds off the scent.

Every penny of every transaction is recorded on each side of the trade. If they don't know where the money is, it's because evidence was destroyed, itself a crime.

9 posted on 02/19/2012 4:39:25 PM PST by NativeNewYorker (Freepin' Jew Boy)
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To: Libloather

And here I thought Sarbanes-Oxley was to prevent this sort of thing.


10 posted on 02/19/2012 4:52:48 PM PST by printhead (Standard & Poor - Poor is the new standard.)
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To: Libloather

One more thing...money could have been daisy-chained to an affiliate in London, where the bankruptcy laws are very different than the US. Once the money reached the UK, even if the transfers along the way were illegal, the funds will be very very hard to get.


11 posted on 02/19/2012 4:56:31 PM PST by NativeNewYorker (Freepin' Jew Boy)
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To: printhead

Corzine SPONSORED that bill...and is clearly guilty of having broken that law. Sweet.


12 posted on 02/19/2012 5:00:24 PM PST by NativeNewYorker (Freepin' Jew Boy)
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To: NativeNewYorker

“the funds will be very very hard to get.”

“Hard to get” is one thing....”we don’t know where it went” is another.


13 posted on 02/19/2012 5:01:50 PM PST by Attention Surplus Disorder (The only economic certainty: When it all blows up, Krugman will say we didn't spend enough.)
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To: Fee
The real problem is it may very well be that what MFG did was perfectly legal. For instance, if you have a margin account - you have borrowed from your broker - the broker can legally pledge 140% of what you have borrowed of your assets held in the account (in the US, in England, it is unlimited). And if MFG offered the assets as repo's, apparently the lender owns the pledged assets upon declaration of insolvency by the counter party.

So, lets see, you have $250,000 in assets at MFG, you've borrowed $100k to acquire those assets, you think that you're good for $150k. Wrong! MFG has pledged $140k of your assets for the cash loan. You only have $110k on account, $40k of what you thought was yours vanishes when MFG defaults. Tough luck!

14 posted on 02/19/2012 5:11:04 PM PST by GregoryFul (We all live in an Idiocracy, an Idiocracy, an Idiocracy...)
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To: Libloather
It's in Obama’s campaign fund.
15 posted on 02/19/2012 5:20:38 PM PST by tobyhill
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To: GregoryFul

What about those without a margin account. Were they affected?


16 posted on 02/19/2012 5:22:46 PM PST by Ken H (Austerity is the irresistible force. Entitlements are the immovable object.)
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To: Libloather
Corslime can't go to prison. How would it look to have 0bama's economic brain behind bars?
17 posted on 02/19/2012 5:38:04 PM PST by TigersEye (Life is about choices. Your choices. Make good ones.)
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To: Liz

“How convenient” ping


18 posted on 02/19/2012 6:51:16 PM PST by thouworm (.)
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To: Libloather

With enough people (forensic accountants) they can track the transactions. The bankruptcy judge is paying a truckload of money for accountants and lawyers. The whole report is a ruse and will be drug out until after the election and then it will be made to go away! Like the Government Motors fiasco, they will change the rules and play the system to achieve the results that they want, and those results will not be Corzine going to jail or the customers getting their money back.


19 posted on 02/19/2012 6:53:59 PM PST by RetiredTexasVet (There's a pill for just about everything ... except stupid!)
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To: Attention Surplus Disorder
”we don’t know where it went”...

...is a lie. I hope they make that statement in a forum where false statements bring jail time.

20 posted on 02/19/2012 7:00:51 PM PST by NativeNewYorker (Freepin' Jew Boy)
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