logo
  Join        Login             Stock Quote

MF Global Customers To Get More Money Back?

 March 21, 2012 12:35 PM


Customers of MF Global could have reason to believe they'll get more of their money back from the collapsed broker/dealer. James Giddens, the trustee in charge of the firm's liquidation, is asking a bankruptcy court to distribute another $685 million to MF Global customers.

As reported March 15 by Bloomberg, Giddens wants commodity customers who traded futures on foreign exchanges to receive payments about $50 million, while some $600 million is slated for customers who traded on U.S. exchanges. Holders of physical assets like precious metals are in line to get about $35 million.

Each of the distributions requires a judge's approval.

MF Global Holdings Ltd., the broker's parent company, filed for bankruptcy protection on Oct. 31. At the time, it had debt totaling nearly $41 billion after making $6.3 billion in risky trades on European sovereign debt and other assets and getting margin calls. Reports later came to light that as much as $1.2 billion was in missing in client money and that the company's leverage ratio was an astonishing 38-to-1.

[Related -Integrated Device Technology Inc. (IDTI) Q1 Earnings Preview: Another Beat and Pop?]

So far MF Global clients have received about 72% of their money following the company's derailment on Oct. 31. The new distributions, however, would increase that percentage, giving customers who traded on U.S.exchanges about 80% of their claims paid. For customers who traded on foreign exchanges, the amount is less than 10%.

MF Global's former CEO Jon Corzine has come under fire following his firm's implosion. Corzine came to MF Global in March 2010 shortly after the firm faced a scandal involving a trader making unauthorized bets. Earlier this month, Corzine testified at a congressional hearing on his firm's collapse but offered little insight into the millions of dollars in missing customer funds.

[Related -Herbalife Ltd. (NYSE:HLF) Q2 Earnings Preview: The Potential To Shock?]

 

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageThe Boeing Company (BA) Q2 Earnings Preview: Durable Earnings Beater

The Boeing Company (NYSE:BA) will publish its second-quarter financial results before the open of the read on...

article imageAngie's List Inc. (ANGI) Q2 Earnings Preview: Trending Towards a Smaller Loss than Expected

Angie's List Inc. (NASDAQ:ANGI) will post its second quarter 2014 financial results will be released on read on...

article imageMicrosoft Corporation (MSFT) Q4 Earnings Preview: Xbox and Surface Margins the Key

Microsoft Corporation (NASDAQ:MSFT) will publish fiscal year 2014 fourth-quarter financial results after read on...

article imageBaidu Inc. (BIDU): Climbing Towards Morgan Stanley’s $239.30 Target

Baidu Inc. (ADR)(NASDAQ:BIDU) is up handsomely today, mostly thanks to an upgrade from Morgan Stanley. read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.