Now here’s a shocker. That sympathetic, honest, almost victimized Jon Corzine, at least that is what the lamestream media would have us believe about Corzine, probably knew that the now-bankrupt MF Global used customer money to lend to a European affiliate.
A CME executive, Terrence Duffy, testified to that Tuesday. CME was a front-line regulator for MF Global.
If so, that is illegal and a misuse of customer funds. It gives us a clue as to what happened to the missing money which Corzine “simply” doesn’t know anything about.
During an internal CME interview, the auditor said Corzine knew of a loan for about $175 million to a European affiliate of MF Global and the loan was likely made in the last couple of days prior to the firm’s October 31 bankruptcy.” Duffy said, a CME auditor … participated in a phone call with senior MF Global employees wherein one employee indicated that Mr. Corzine knew about the loans that had been made from the customer segregated accounts.”
And here’s the rub – on Tuesday, Corzine said, “I want to be clear, I never gave any instructions to misuse customer funds, I never intended anyone at MF Global to misuse customer funds.” That is not a very honest statement if he did indeed know about the $175 million loan.
Corzine still claims he didn’t know where the money went and he didn’t comment on Duffy’s testimony as of yet. Sounds like a lot of the missing money might have gone into worthless European loans. Read more: Reuters