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Former F.B.I. Chief Asked to Oversee MF Global’s Bankruptcy

November 28, 2011
Louis Freeh, the former director of the F.B.I. has been asked to become the trustee for MF Global as it seeks to unwind itself in bankruptcy court.  Should he be approved by the court, Freeh would formally take charge of MF Global’s holding company, relieving the firm’s board. He  would also coordinate with investigators and would push for a speedy payout to the firm’s creditors, according to documents filed in Federal Bankruptcy Court in Manhattan. His work is separate from that of James W. Giddens, who was appointed as the trustee of MF Global’s main American brokerage unit and is responsible for liquidating that business and returning funds to customers. MF Global subsidiaries in other countries are under the control of separate officials.  Mr. Freeh would be asked to coordinate with those other trustees to return assets to the holding company, so that they could be sold to pay off creditors. The choice of Mr. Freeh, 61, comes as MF Global faces inquiries by several government agencies, including the F.B.I., into its demise. Investigators are still searching for hundreds of millions of dollars in missing client funds, which by one estimate now totals $1.2 billion. Mr. Freeh’s legal services are in high demand these days.  He  has also been asked to oversee Penn State's investigation into the sexual abuse scandal centering on the former assistant football coach, Jerry Sandusky.  [Dealbook 11/25/11]