Late Friday afternoon, the time when they love to release damaging news in the hope that it will get lost in the weekend spin cycle, a rehashed disclosure came out about “Knows Nothing” Jon Corzine. A memo had been located, which showed that Corzine had specifically directed that client funds be used to cover an MF Global bounced check to JP Morgan Chase. While this was a partial rehash, in light of recent findings, it adds clarity to Corzine’s actions when MF hit the fan. An assistant treasurer Edith O’Brien of the MF sent the email as part of a CYA effort, to avoid being scapegoated by Corzine, for the theft.
She states that JC(Jon Corzine) directly ordered $200 million in “segregated” customer funds be used to pay the overdraft. Of course Corzine is saying that he had no idea client funds were used for this purpose. But one must doubt the veracity of this claim. Would a mid level employee take it upon herself to raid the customer’s accounts, to stave off MF’s collapse? A good question that needs to be answered before a grand jury. Perhaps an offer of immunity or a reduced sentence will help jar O’Brien’s memory.