MF Global Counsel Resisted Giving Assurances on Transfers
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MF Global Holdings Ltd. General Counsel Laurie Ferber twice resisted providing assurances to JPMorgan Chase & Co. that the company was complying with rules to segregate customers’ collateral, saying language in a draft provided by the bank was too broad.
JPMorgan was “specifically interested in two transfers” that occurred the morning of Oct. 28, Ferber said in testimony prepared for a House Financial Services subcommittee hearing tomorrow. The first was a $200 million transfer from a segregated account at the firm’s brokerage to a “house” account, followed by a move of $175 million from the house account to a London subsidiary’s account at JPMorgan, she said.