Barofsky: MF Global Still Looks Like a Fraud

I doubt very much justice will be done, unless Edith O'Brien cuts a deal for immunity and has some proof of what was said and known by the executives of MF Global.

The foundations for the cover stories have been well laid already in the press.

Gold Daily and Silver Weekly Charts - A Burst of Liquidity Expectations Sparks a Flight to the Metals

A sharp rally in the metals as Bernanke dispels the deflationary delusion.

SP 500 and NDX Futures Daily Charts - The Bernanke Bubble

A big rally, but on remarkably light volume.

Bernanke is running the presses, but pumping another paper asset bubble that primarily benefits the already wealthy.

As noted earlier today, I think we are seeing the American financiers starting to leave Europe and Asia. If this trend continues, look for the currency war to enter another phase in which its effects will be unmistakable, even for the mainstream muppets.

This will end badly.

NY Times Says They Saw an Email that Says Corzine Did Not Know, Was Apparently Misled

Now it starts to get really interesting.

Of course Jon Corzine did not know. He's only the CEO.

Leak, and counter-leak.

He said.  She said.

Check your closet floor, Edith. What were you wearing that day?

You look like the designated patsy.

One thing that the email seems to indicate, however, is that at least $175 million of the customer money was never missing or vaporized, but was sitting in an account at JPM in London. And they never received back confirmation that the money was NOT customer funds.

That account was MF Global's account. Did JPM seize the money when MF Global went bankrupt? Their rationale would be that it was a settlement, and therefore exempt from laws against fraudulent conveyance based on a 2005 law.

NYT
E-Mail to Corzine Said Transfer Was Not Customer Money
By BEN PROTESS and AZAM AHMED
March 25, 2012

Jon S. Corzine, the former chief executive of MF Global, was told during the brokerage firm’s final day of business that a crucial transfer of $175 million came from the firm’s own money, not from a customer account, according to an internal e-mail.

The e-mail, sent by an executive in MF Global’s Chicago office, showed that the company had transferred $175 million to replenish an overdrawn account at JPMorgan Chase in London. The transfer, the e-mail said, was a “House Wire,” meaning that it came from the firm’s own money. The e-mail, sent at 2:20 p.m. on Oct. 28 to Mr. Corzine and two of his assistants in New York, says the transfer came from a “nonseg” account, industry speak for a noncustomer account.

But the e-mail, a copy of which was reviewed by The New York Times, did not capture the full story behind the wire, which turned out to contain customer money. MF Global employees in Chicago had first transferred $200 million from a customer account to the firm’s house account, people briefed on the matter said. Once it was in the firm’s coffers, the people said, Chicago employees then promptly transferred $175 million of the money to the MF Global account at JPMorgan in London — the account that was overdrawn....

Miloš Kopecký and the mainstream media financial cold war boogie woogie.