Sunday, December 30, 2012

Some MF Global Customers May End Up Whole

AP:
Some customers of the failed brokerage MF Global could get back all the money they lost, according to the trustee who is working to recover those funds.
The Securities Investor Protection Corporation said there would “likely” be full restoration for securities customers who made “accepted” claims to get their money back. There should also be “significant additional distributions” to return some money to commodities customers, the organization said.
The outlook for repayments follows an agreement reached recently. James Giddens, the bankruptcy trustee overseeing the liquidation of MF Global’s main brokerage unit, and Richard Heis, who is overseeing the liquidation of the company’s United Kingdom operations, agreed to resolve all claims between the two corporate entities.
That agreement could result in an extra $500 million to $600 million eventually being freed up for the main brokerage unit to return to customers. The agreement still has to be approved by U.S. bankruptcy court.
I'm not sure what "accepted" claims means, but it would be nice if the small guys come out ok on the deal.  I still don't know how nobody (especially Corzine) has been charged with a crime in that collapse.

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