Mar 24, 2012
Late Friday afternoon is always the time when Da Boyz love to release damaging news. In hopes, of course, the news will get lost in the weekend spin cycle. Today, a rehashed disclosure came out about "Knows Nothing" Jon Corzine. A memo had been located, which showed that Corzine had specifically directed client funds be used to cover an MF Global bounced check to JP Morgan Chase. While this was a partial rehash, in light of recent findings, it adds clarity to Corzine's actions when MF's S hit the fan. Edith O'Brien, an assistant treasurer at MF sent the email as part of a CYA effort to avoid being scapegoated by Corzine for the theft.
The e-mail states JC (Jon Corzine) directly ordered $200 million in "segregated" customer funds be used to pay the overdraft. Corzine is, of course, saying he had no idea client funds were used for this purpose. You must doubt the veracity of this claim. Would a mid level employee take it upon herself to raid the customer's accounts, to effectively stave off MF's collapse? This is a good question, and one that needs to be answered before a grand jury. Perhaps an offer of immunity or a reduced sentence will help jar O'Brien's memory.
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