Congressional investigators wrote a memo saying that Jon Corzine, MF Global’s CEO, gave “direct instructions” to transfer $200 million from a customer fund account to meet an overdraft in a brokerage account with JP Morgan. Corzine sent the email on October 28, three days before MF Global collapsed, says the memo.
Edith O’Brien, a treasurer for the firm, said that the internal email was sent as the broker found credit lines limited by JP Morgan, the firm’s clearing bank and one of its custodian banks for segregated customer funds. O’Brien is scheduled to testify at the hearing after being subpoenaed.
Corzine’s spokesman, Steven Goldberg, said that Corzine “never gave any instruction to misuse customer funds and never intended anyone at MF Global to misuse customer funds.”
Read more about the memo here.