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MF Global $2.2 billion transfer to customers approved
December 9, 2011
MF Global's customers are about to get some more of their money back. A U.S. bankruptcy court judge has approved a $2.2 billion bulk transfer that would bring the recovery of nearly all U.S. commodities customers of fallen brokerage MF Global to about 72 percent of their accounts.
The judge overruled several objections to the transfer, including some from customers who traded on foreign exchanges, which are not included in the transfers. Lawyers for James Giddens, the trustee unwinding the brokerage, said MF Global owes about $878 million on foreign accounts.
Most of the transfer should be completed in a few days, but portions of it could take as long as four weeks, the lawyers said.
James Kobak, lead attorney for trustee James Giddens, told the judge that he could not go into details of an ongoing investigation into what caused a major shortfall in MF Global's customer funds, but acknowledged at a hearing that there were suspicious transfers from customer accounts leading up to the October 31 collapse of the firm headed by former Chief Executive Officer Jon Corzine. [Reuters 12/9/11]

