Judge Approves Full Payout For MF Global Clients

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.


Lifestyle

Survey: Wall Street Banks Still Top Silicon Valley, Hedge Funds for Freshly-Minted MBAs

Jun 21 2016 | 9:01pm ET

Contrary to concerns that Wall Street isn't as appealing to new graduates as it...

Guest Contributor

The Future of the Blockchain in Financial Services Communications

Jun 17 2016 | 1:05pm ET

Over the past year, a large portion of the financial services industry has awakened...