/// Donna Kline Now!

Fig. 1 – President Obama and John Corzine, former CEO of Goldman Sachs. Former Senator of New Jersey. Source: Washington Examiner.

Fig. 2 – Who are the REAL crooks? Source: Star Tribune

Fig. 3 – “Veritas” in the Harvard logo means “Truth” in Latin. Has Harvard’s quest for truth lost is way? Source: Wikipedia.

If you have been following my blog for a while, you may remember this post from November of 2011. In the post, I spell out the possible series of events that led to the second largest financial collapse in history. (Second only to Lehman Brothers in 2008) The bankruptcy filing came after MF Global reported a $191.6 million quarterly loss on October 25th and spent the weekend searching for buyers to prevent their demise. There were no takers. I imagine that upon analyzing MF Global’s accounting records, potential buyers discovered the dramatic shortfall in funds, and possibly even a record of investor funds being transferred to the corporate balance sheet? Somebody saw something smelly, that’s for sure. I proposed in my post that management (and potentially CEO Jon Corzine), had ordered the transfer of funds from private segregated customer accounts to cover the big fat losing trade on MFG’s books.

The latest news to hit the wires says I was right! Yay me.

An internal email reveals that on October 28th, 2011, Jon Corzine ordered $200 million to be transferred to an MF Global account from a segregated customer account held at JP Morgan. This is just a drop in the bucket of the $1.6 Billion of missing customer funds, but it at least proves one illegal transfer of money. The email was sent by Edith O’Brien, the Assistant Treasurer of the firm. Ms. O’Brien has been subpoenaed to testify before Congress next week. She is expected to ‘take the fifth.’ Other MF Global executives will also be called to testify. Will ANYONE go to jail? Click here for Bloomberg TV coverage.

Please see these links for more on the story: MarketWatch, Bloomberg, The Huffington Post and Business Week, to name a few.

There is a long, twisty road that ties Jon Corzine, Hank Paulson, Barack Obama , Jamie Dimon and Lloyd Blankfein together. Follow the bouncing ball….

• Jon Corzine: Former CEO of Goldman Sachs. Former Senator of New Jersey. CEO of MF Global during their collapse.
• Henry Paulson: Former CEO of Goldman Sachs, Harvard graduate, former Secretary of the U.S. Treasury.
• Barack Obama: Harvard graduate, current President of the United States.
• Jamie Dimon: Harvard graduate, current CEO of JP Morgan (the brokerage firm for now defunct MFG.)
• Lloyd Blankfein: Harvard graduate, current CEO of Goldman Sachs.
• Lawrence Summers: Harvard’s former president, Director of the White House National Economic Council for President Barack Obama until November 2010.

Did you know that Jon Corzine, Lloyd Blankfein and Jamie Dimon held a $38,500/plate fund raiser for Barack Obama at Corzine’s house on April 27, 2011? Check it out here.

Fig. 4 – Lloyd Blankfein (left) and (Jamie Dimon (right) promising to tell the [Harvard?] truth to the U.S. Senate Financial Crisis Inquiry Commission on January 13, 2010. The punishments are worse for plagarism on a term paper than the wholesale bankrupting of the US economy by a Harvard man. The body language speaks volumes. Are these guys getting ready to tell the truth? Source: Business Week

I have to end the post here for now. Please check back for more details in an update. Thanks!