The document was never signed, though Genova stated that she "believed we were given clear assurance that the transfers were lawful."
Most of the testimony covered well-worn ground and the inability to bring clarity to what happened during the final week of operations at MF Global led to some frustration on the part of lawmakers and some testy exchanges. One lawmaker said the situation was “utterly disgraceful” and another told witnesses on the first panel that they “all should be ashamed of themselves.”
The March 23 leaked memo from committee staff held out some promise that the hearings would be more eventful, and some items from the memo didn’t square with all of the testimony. For example, Genova’s written testimony states, “J.P. Morgan had offered, as part of its ongoing support for MF Global, to take the unusual step of providing same-day liquidity as to any such sales in which J.P. Morgan acted as agent on MF Global’s behalf with respect to securities actually custodied at J.P. Morgan. This measure would provide MF Global with liquidity on the fastest possible basis.…”
The staff background memo noted that in an Oct. 28 meeting with regulators that “Mr. Corzine and Mr. Steenkamp expressed frustration with [JP Morgan’s] delays in transmitting sale proceeds.”
It adds that MFGH Treasurer Vinay Mahajan noted in an e-mail that JP Morgan was “holding up vital business in the U.S. as a result” of the overdrawn U.K. account.
However, lawmakers did not pursue issues regarding the cooperation between MF Global and JP Morgan.
The memo also highlighted an interview with Serwinski where she revealed a conversation she had with O’Brien regarding the shortfall. When O’Brien revealed to Serwinski that the shortfall was real and not an accounting error, she also shared documents that showed the deficiency was the result of “three types of transactions: 1) intra-day loans between MF Global’s FCM and its broker dealer; 2) the funding of outgoing broker dealer client funds; and 3) a $175 million transfer to MF Global’s London office on Oct. 28. Together, these transactions totaled $909 million.”