On page 3 of a memo from the staff of the House Financial Services Committee to the committee's members, it is revealed that Ms. Edith O'Brien, the former Assistant Treasurer of MF Global, wrote in an e-mail that a transfer of $200 million out of MF's segregated customer accounts to cover margin calls on the firm's own failing investments in European government bonds was "Per JC's [Jon Corzine's] direct instructions."

Though this sounds initially like a bombshell, Corzine had already admitted to approving this transfer but claimed that he had no knowledge that it involved customer money.

As CNN reports, a spokesman for Corzine said today that Corzine "recalls having received written material indicating that the funds used to cure the overdrafts were appropriate for that purpose."

Still, an e-mail proving that Corzine directed the transfer makes one wonder if Corzine can prove his claims and his plausible deniability. Further, if Corzine is telling the truth, then he was lied to by somebody -- and justice demands that that somebody have a day of reckoning -- by which I mean some years in federal prison.

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I Am John Galt
Politics, economics, current events, philosophy and more, with a focus on free minds, free markets, and free people.

Following Obama's Economic Policies

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