$200 million in MF Global clients' missing funds have been traced to JP Morgan Chase in Britain.
Gee, what a surprise. On Friday, we alerted readers to the suspicious timing of the 614k ounces of silver suddenly turning up in JPM registered COMEX vaults, shortly after 627k ounces of silver went missing from MFG clients at non-cartel banks.
Look for the total client theft to be nearly $3 BILLION by the time the dust settles.
About $200 million in customer money that vanished from MF Global is believed to have surfaced at JPMorgan Chase in Britain, according to people briefed on the matter. The discovery could be the most significant breakthrough in a monthlong hunt for the missing funds.
During MF Global's last chaotic days, the brokerage firm overdrew an account at JPMorgan, according to another person who is close to the matter. Some investigators now believe the firm used customer funds to patch at least some of the hole, which would have been a significant breach of federal law.
MF Global transferred the roughly $200 million in the days before the firm filed for bankruptcy, said the people, who requested anonymity because the investigation was incomplete.
Some investigators suspect that the transfer to JPMorgan was the first major misuse of customer money at MF Global, the commodity brokerage powerhouse once run by Jon S. Corzine, the former Democratic governor of New Jersey. Authorities are also looking into whether JPMorgan initially questioned the source of the cash and sought proof from MF Global that it was complying with regulations, one of the people said.