[9]Breaking reports state that JP Morgan [10] received a $200 million margin call on London [11]’s LIFFE [12] exchange 3 days prior to the MFG Bankruptcy over naked euro put options.  The margin call came when the Dallas Fed refused to offer JPM [13] a line of credit due to JPM’s use of TARP funds [14] to write euro derivatives.  The report alleges that a panicked Jamie Dimon [15] called Tim Geithner [16], Ben Bernanke [17], and Gary Gensler [18] demanding the problem be taken care of and within the hour, the CME re-issued the $200 million margin call to the counter-party on the derivatives trade (MF Global [19]), and the rest is history.

These are the most serious allegations of fraudulent activity in the entire financial collapse to date.  If proven true, while Jon Corzine still deserves serious hard time for using client funds to meet said margin call; sulfur, fire, and brimstone would be too light a judgement for one JPMorgan CEO.

It can now be reported that the U.S. Senate Committee on Banking has new evidence showing thatJP Morgan had a $200 million overdraft aka a second margin call on the London LIFFE Exchange three days before the MF Global bankruptcy fiasco was triggered.The second margin call (the first margin call was four days earlier for $175 million) dealt with cross-collateralized, compounded naked euro currency put options that were written by JP Morgan with the transactions being placed through the CME Group and the aforementioned London LIFFE Exchange.

We can now divulge that, thanks to PROMIS software, MF Global took the opposite side of the trade.

Read More @ SilverDoctors.com [20]