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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 ...
Visit Jon at his house.
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.
If justice was done he wouldn’t have a house other than the Big House.
The trail will lead back to some of the big banks. And it will never be exposed.
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.
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.
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!
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.
And here I thought Sarbanes-Oxley was to prevent this sort of thing.
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.
Corzine SPONSORED that bill...and is clearly guilty of having broken that law. Sweet.
“the funds will be very very hard to get.”
“Hard to get” is one thing....”we don’t know where it went” is another.
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!
What about those without a margin account. Were they affected?
“How convenient” ping
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.
...is a lie. I hope they make that statement in a forum where false statements bring jail time.
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