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The FB -- now looking into the collapse of former new York New Jersey governor and Goldman Sachs said.
Senator Jon Corzine's company and a global.
The big story this week and nobody's been more on top -- -- our senior correspondent Charlie Gasparino who.
Now for more exclusive report Charles in DC today what do you found out time.
And here's what we know where this investigation is kind of heading at least right now with sources close an investigation until the fox does network and it's focusing.
On misleading public statements to investors from may be Corzine.
Or some his senior executives prior to the bankruptcy that this whole notion of co -- the decline cash with with the other stuff they're doing the risk taking activity.
That from what I understand that is taking a backseat to this other broader issue of whether the whether.
Corzine and his troops were misleading that the public we should point out that.
You know that co mingling of cash -- with what the allegation was.
That they needed to fund themselves they were taken Kline cash -- to be separated out and using that for short term financing needs.
Because obviously there was a run on the bank Angela in -- at the end of last week where I've met -- global was fighting for survival in not supposed to do that.
But I'll tell you guys from what I understand the investigation is now focusing on that -- they apparently have found the money so this is not a Ponzi scheme thank god.
They found that the client cash.
But that's not focusing on that it is really focusing.
On on this whole notion of did.
Jon Corzine and his troops mislead MF global about the serious state of the firm but maybe its sovereign investments its its exposure.
To Italy and Spain sovereign debt.
In the days leading up to the bankruptcy and the date that they lie.
-- I think they did they ramifications if they lied.
About their funding -- -- they kept saying they were they had plenty of cash around you know this is -- what I was hearing when I was first reporting that some clients weren't lending them money.
They lie about their their cash business and so all that is really where this investigation is going.
We should also point out that over the weekend bankers -- ever quorum BlackRock they did due diligence on on MF global as they were getting prepared to sell various.
Parts of the firm to other investors interactive brokers be -- one when adjusted party.
Our jury knows due diligence they found that cold and they found the evidence of the co mingled funds.
They did not think this is what we're getting exclusively -- from people close to BlackRock and have a court.
They did not think that this was a fraud they thought it was simply really sloppy -- keeping the people -- MF global weren't hiding that stuff.
So that takes a lot of sort of steam if this is and this is accurate we're getting this you know from sources pretty close.
To the investigation pretty close to the bush this sort of due diligence that when -- last week if there was no evidence of you know hiding debate -- so to speak of purposely misleading bankers about where these funds are.
It takes a lot of steam out of the whole notion that they were purposely commingling and hiding stuff.
The real investigation we are told -- -- serious part.
Is this notion of did you did Corzine and his troops go out there and like the Republican -- That's what they look that Dick Fuld at Lehman Brothers that's what they look at Alan Schwartz over Bear Stearns member based prior to both failure of bear and Lehman.
-- Schwartz is a former CEO of bear you know everything was hunky dory they said and then the firm's collapse.
Charges have now been brought against either I think we have first report that charge and I can be brought likely in the Lehman case -- you know like.
Really difficult cases -- very tough topic of spread but great work Charlie Gasparino as always.
We know how hard to work in your terrific at it Charlotte NC expects.
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