Face-Off Over Shortfall: MF Global, J.P. Morgan Joust as Regulators Continue Search for $600 Million

[PoliticAverse]

Source: Wall Street Journal

J.P. Morgan Chase & Co. and MF Global Holdings Ltd. agree on one thing: The two financial players worked together closely in the months before MF Global collapsed.

Then things get messy.

<...>

The spat comes amid a frantic search for the missing money, led by the Commodity Futures Trading Commission and bankruptcy trustee James W. Giddens. Because of the shortfall, it could take weeks or even months for anxious MF Global customers to get all their money back.

A week after the company filed for bankruptcy protection, MF Global officials still are unable to explain what happened to the money in customer accounts, according to one government official. "It shouldn't be that complicated," the official said.

Read more: http://online.wsj.com/article/SB10001424052970203733504577024502391425244.html

[notadmblnd]

1. ummm, I'm pretty sure they gave it away in bonuses just before filing for bankruptcy

[valerief]

2. Tada! You get a bonus for that answer! nt

[logosoco]

3. Have they checked the couch cushions?

Or how about the floor in the car. That's usually where I find my money.










Oh, yeah, this is sarcasm. I am just laughing to keep from going insane!

[MannyGoldstein]

4. Kabuki theater

The responsible parties will not be prosecuted because bankers are recognized by the Obama administration as a protected class, and any monies they pay to settle this will be reimbursed by Treasury or the Fed.

[TheMadMonk]

5. Depending on exactly how they are involved, this may well be (rightly) true.

A bank may well have full knowledge (directly or by inferrence) of a company's financials and yet be absolutely forbidden to act on that knowledge except when certain clearly defined metrics are met.

Now if it can be clearly established (not suspected, but established) that J.P. Morgan used their prior knowledge to cover their own exposure, that's a different and entirely prosecutable matter. And you beef (mine too BTW) about bailouts would have some merit.