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MF Global: Trustee Seeks Widespread Subpoena Power

November 7, 2011
James Giddens, MF Global's  trustee asked a judge for permission to subpoena the company's directors and officers, saying he needs to find out if fraud or misconduct led to the bankruptcy and what lawsuits he might bring. The subpoena would grant Mr. Giddens the authority to demand documents and question brokerage firm officers, directors, lenders and trading partners, among others.  He added that getting information and interviews with "certain business and governmental entities"  may require a subpoena. Under bankruptcy law, a trustee can demand return of transfers made just before the bankruptcy, and other transfers if he can show they weren't taken "in good faith," according to SIPC President Stephen Harbeck.  The SIPC is overseeing the liquidation of MF Global. One of Mr. Giddens' first moves - on 10/31, when the firm filed for bankruptcy protection - was to freeze the accounts of 150,000 MF Global customers.  That includes 50,000 commodities accounts that he seeks to transfer to other futures brokers. For further details, go to:   [Bloomberg, 11/3/11]