Tag Archives: Report – JPM Received $200 Million Margin Call 3 Days Prior To MFG Bankruptcy

Socrates Berlin – Report – JPM Received $200 Million Margin Call 3 Days Prior To MFG Bankruptcy – 27 March 2012

 

 

Breaking reports state that JP Morgan received a $200 million margin call on London’s LIFFE 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 a line of credit due to JPM’s use of TARP funds to write euro derivatives.  The report alleges that a panicked Jamie Dimon called Tim Geithner, Ben Bernanke, and Gary Gensler 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), and the rest is history. Continue reading