JPMorgan Lawyer Says MF Global Gave Assurances About Transfer - NYTimes.com

JPMorgan Lawyer Says MF Global Gave Assurances About Transfer

By AZAM AHMED

Andrew Harrer/Bloomberg NewsRandy Neugebauer leads the House oversight panel that will hold a hearing on MF Global.

MF Global employees repeatedly gave oral assurances to JPMorgan Chase that a crucial payment to cover an overdraft at the bank was not funded by customer money, a lawyer for the bank is expected to tell a Congressional panel on Wednesday.
The transfer of $175 million to JPMorgan on Oct. 28 has become a central focus of the investigation into how more than $1 billion in customer money vanished from MF Global. While much of the narrative in the written statement of Diane Genova, a deputy general counsel at JPMorgan, is known, her testimony will be the first time an employee of the bank will speak publicly about MF Global’s fateful last week.
What emerges from the testimony is the myriad ways that JPMorgan interacted with MF Global. The bank held four segregated customer accounts for the commodities brokerage. It also cleared securities and administered two lines of credit for MF Global — one for $1.2 billion and another for $300 million.

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