NEW YORK—An internal memo from bankrupt broker-dealer MF Global suggested that former CEO Jon Corzine gave “direct instructions” to transfer $200 million to fund an overdrawn account.
The memo, from Assistant Treasurer Edith O'Brien, said that the transfer of $200 million from client accounts was “Per JC’s direct instructions.” The email was dated Oct. 28, 2011, three days before the New York-based MF Global filed for bankruptcy protection.
The memo was part of subpoenaed documents provided to congressional investigators.
The $200 million was moved from a customer account—which should be protected from regulators and the industry’s self-regulator according to guidelines—to an MF Global account with J.P. Morgan, a unit of JPMorgan Chase & Co.
