The congressional investigation into what happened to the 1.6 billion dollars managed by MF Global just got very interesting. Right after the company’s former CEO, Jon Corzine, gave new testimony before Congress on Friday, email evidence was submitted that showed Corzine directed $175 million in customer account money transferred to cover an overdraft.
Edith O’Brien, an assistant treasurer who was among the employees involved in moving money at MF Global, wrote in the email that the $200 million transfer to an MF Global account at J.P. Morgan Chase & Co. in London was “Per JC’s [Jon Corzine’s] direct instructions,” according to the memo.
The transfer was needed to fix a $175 million overdraft in the bank account that was making it harder for MF Global to buy and sell securities as it scrambled to survive in late October, according to the memo.
Customer accounts hold both firm money and customer money that isn’t supposed to be touched under federal regulations. In testimony to lawmakers in December, Mr. Corzine, the former Goldman Sachs Group Inc. chairman and New Jersey governor who was MF Global’s CEO, said he never directed anyone to misuse customer funds. -WSJ
Uh oh, Mr Corzine, the man who was almost Treasurer of the United States in 2009 and was said to again to be under consideration in mid-2011, appears to have lied. My, how the mighty have fallen.
Corzine’s fate is of great interest to Democrats and Obama. He has given nearly 3 million dollars in soft money. He is a former governor of New Jersey, a man Obama campaigned for against eventual winner Chris Christie. Corzine made a personal donation to the Obama campaign in May, 2011:
What’s this? Corzine’s donation to Obama was refunded December 21st, about a month after MF Global went bankrupt. Apparently Obama doesn’t want his friend’s money. I guess Obama can’t be associated with a
crook rogue Wall Street one-percenter.
Now that the Corzine testimony conflicts with actual evidence in the MF Global case, I imagine his BFF status with Obama and the Democrats is over. The investigation will continue and as in the movie Deliverance, we will all have to wait to see “what comes out of the river.”