Wednesday, 25 May 2016
Last updated 2 hours ago
Nov 6 2013 | 11:52am ET
Clients of collapsed futures brokerage MF Global are set to get all of their money back, two years after the firm fell apart.
U.S. Bankruptcy Judge Martin Glenn has approved MF Global trustee James Giddens' plan to use the remaining funds from the firm's estate to make its customers whole. The roughly 20,000 clients, including many hedge funds, could get the remaining $230 million by the end of the year.
The biggest beneficiaries of Glenn's ruling will be MF Global customers who traded overseas; they have only received 74% of their money back. Customers who traded in the U.S. have already gotten about 98% of their money.
"At the outside of the case, nobody thought that customers would recover everything they lost," the judge said at yesterday's hearing.
Some $1.6 billion disappeared from MF Global accounts as the firm, headed by former New Jersey Gov. Jon Corzine, struggled to survive.