In BOMBSHELL REVELATIONS, The WSJ reports that MF Global sold Italian bonds at a 5% discount to current market prices to none other than JP Morgan Chase- AFTER DECLARING BANKRUPTCY!!
"buyers paid about 89 cents on the dollar for the Italian bonds, compared with a market price of about 94 cents at the time...The securities were sold just after MF Global's Oct. 31 bankruptcy filing under an administrator."
If true, this amounts to an unimaginable theft to MF Global's non-JPM creditors and clients who will all receive massive haircuts- in part due to a 5% post-bankruptcy discount given to Mr. Dimon et al.
George Soros isn't the only fan of Jon Corzine's European bonds.
J.P Morgan Chase & Co. and at least one large hedge fund bought Italian bonds that until recently were owned by MF Global Holdings Ltd., the bonds that played a key role in pushing the securities firm formerly run by Mr. Corzine into bankruptcy, according to people familiar with the matter.
J.P Morgan and the hedge fund didn't buy nearly as much as the $2 billion that Mr. Soros spent to buy these bonds. The securities were sold just after MF Global's Oct. 31 bankruptcy filing under an administrator.