The trustee for MF Global’s bankrupt parent company will have additional time to review a $160 million settlement that would benefit the failed broker dealer’s customers, a person familiar with the matter said last week.
The Senate Agriculture Committee looks into the failures of MF Global and Peregrine Financial (more below).
“While the comments may offer more hope to thousands of futures trading customers who have thus far seen a return of only 72 percent of the estimated $5.5 billion in segregated funds that were frozen at the broker when it failed last October, Freeh also said his comments were based only on “currently available public data in the United States and reports issued by affiliates and administrators around the world.
If Freeh successfully
challenges the deal in the future, Giddens would return the
money from reserve funds, not from clawing back money already
paid to customers.
Freeh, who is working on recovering creditors funds, said he believed efforts by fellow trustee James Giddens to recover customer funds would be successful.
We very much would like to pay every customer 100 percent,” Giddens said, but “it will be a time consuming, difficult uphill battle.
Alexandra Zucchi is a business journalist based in Hobart, Australia. Alexandra has a passion for financial markets and breaking news stories and loves writing about business news, stock market, and economic opinions that matters most to its audience. Alexandra spends a lot of time discovering and researching latest financial markets and industry news stories in order to make sure the latest and greatest stories are brought to you first on BigBoardNews.com.