MF Global Trustees Want Oversight, Limits On Corzine Legal Bills

May 13 2014 | 9:47am ET

If former MF Global CEO Jon Corzine wants more money to pay his legal bills, he should have to explain how he’s spending it, trustees for the collapsed futures brokerage said.

Corzine and other MF Global insiders facing litigation stemming from the firm’s failure last month asked the judge overseeing its bankruptcy to boost the amount they can spend on lawyers by one-third, to $40 million. The money comes from MF Global’s insurance policies and could otherwise be used to pay off the company’s creditors.

Trustees James Giddens and Bruce Bennett did not reject the request outright. But they criticized Corzine and other executives for spending exorbitantly and not doing enough to keep legal costs down. Should U.S. Bankruptcy Judge Martin Glenn approve the request, they said, there should be strings attached, in the form of oversight and cost controls.

Giddens complained that the former executives’ lawyers have dragged matters out and rejected cost-saving proposals. Glenn will hold a hearing on the matter on May 19.


In Depth

Star Fund Managers Battered By Rocky Ride In Yields, Currencies

May 28 2015 | 6:05am ET

Some of the biggest names in the investment world have been whipsawed by the recent...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

The Road To Tax Alpha

May 28 2015 | 5:36am ET

Tax-related alerts are increasingly helping investment managers harvest tax alpha...

 

Sponsored Content

Editor's Note