OBAMA ADVISOR, CORZINE, JAIL BOUND?

Submitted by: Donald Hank

Jon Corzine, former governor of NJ, was CEO of MF Global before it folded. Under his supervision, money this company was HOLDING for its clients in the company bank account (not yet invested, see?) disappeared.

Now, if you have ever had an account at a company that assists its customers in making trades (something like Ameritrade, Scottrade, Waterhouse, etc, except that MF Global traded in commodities, not stocks), you know that these companies don’t have the right to touch your cash as long as it is in their bank and has not yet been invested. Right? Taking that would be exactly like your bank manager helping himself to money from your savings account. It would be, well, like stealing. No, scratch that. It WOULD be stealing.

Now, Corzine has been acting as though the untouchable client money in the company bank disappeared somewhere far away where he could not have possibly known. He's as eager to find out where it went as you are, by golly! Gee, where did it go, Jon? He can't remember. He has amnesia. He is Jon Corzine so he is above reproach. See his lawyer, etc.

Here is your dilemma:

If you call Jon Corzine a crook, then some people will say "innocent until proven guilty." So be careful.

If you say he is NOT a crook, then you aren't paying attention. So read the article below >>>

Then if you feel like calling Jon Corzine a crook, go ahead. But don't say I called him that. Far be it from me... My theory? Amnesia. You know how absent minded those former governors are.

Don Hank

 

MFer Global: Clawbacks AND Handcuffs NOW!

This ought to be over about now. Jon S. Corzine, MF Global Holding Ltd. (MFGLQ)’s chief executive officer, gave “direct instructions” to transfer $200 million from a customer fund account to meet an overdraft in one of the brokerage’s JPMorgan Chase & Co. (JPM)accounts in London, according to an e-mail sent by a firm executive. Edith O’Brien, a treasurer for the firm, said in an e-mail sent the afternoon of Oct. 28, three days before the company collapsed, that the transfer of the funds was “Per JC’s direct instructions,” according to a copy of a memo drafted by congressional investigators and obtained by Bloomberg News. Where’s the indictment? Corzine is entitled to the presumption of innocence but the victims of this apparent scheme are entitled to justice.  Where is it?  Six months into this we now have prima-facie evidence that Corzine ordered a transfer from customer segregated funds to meet a margin call against the firm’s proprietary trading. If there’s an argument that this sort of transfer would be lawful I’d love to see it. More to the point, if this sort of transfer is lawful then no person in this country can ever trade anything in a brokerage again until it is rendered unlawful and assurances are available that this conduct will result in long prison sentences and personal liability. If you do then you are a rube, as your funds are simply there for the purpose of (legally) stealing them when, not if your brokerage finds itself underwater. There’s a further problem: Barry Zubrow, JPMorgan’s chief risk officer, called Corzine to seek assurances that the funds belonged to MF Global and not customers. JPMorgan drafted a letter to be signed by O’Brien to ensure that MF Global was complying with rules requiring customers’ collateral to be segregated. The letter was never returned to JPMorgan, the memo said. So JP Morgan suspected the funds were stolen and drafted a letter demanding a written assurance they were not.  They never got that assurance, which means they knew the funds were impaired. This in turn means they effectively received stolen property and thus have destroyed any argument they might have in “good faith” reception of the funds, which in turn means that all of those funds must be immediately clawed back. We’re six months into this folks, and the customers of MFer Global still don’t have their money.  But now we have not just the belief that the company knowingly took customer funds to satisfy a margin call on their proprietary positions, we have evidence they did so. And we further have hard evidence that JP Morgan knew the funds were taken from customer segregated accounts and were not MF Global’s to disburse. If we do not see indictments and the clawback of those funds in the immediate future every American will have no choice but to consider the federal government to be nothing more than a bunch of felonious thugs — from the Office of the President on down.