The question isn’t whether JP Morgan has the money, but under what pretenses it was given to them (assuming of course that they have it). If it was given as collateral for bond positions, well, it was segregated funds that MF Global had no right to give. I don’t know what happens if that’s the case, but bankruptcy proceedings and criminal investigation of MF Global are a good place to start.
JPM pockets more than $650m in taxpayer funds during each POMO. Someone is saving Corzine's A$$ and they think we are just stupid.
I could easily believe that JPM was holding the bag on the Italian debt that Corzione went all in on. Once the spreads get crushed, naturally they are going to call the margin or just secure it from ANY funds deposited at the bank. JPM wasn't going to take a hit on $1.5b. So, either Dimon needs to go to jail for illegally laying claim to funds in client accounts, or Corzine didn't maintain seperate accounts and comingled from the word go in order to get into the REPO trade in Europe - in which case he is a dirtbag and needs to go to jail. One way or another, one of these guys needs to go to jail. Hmmmmmm I wont hold my breath - if it came down to it, uncle Benny could just slide some freshly printed bills to cover someone's backside. This whole damn thing stinks.