Market Matters Blog
Katie Micik DTN Markets Editor

Monday 01/14/13

More Money for MF Global Customers in the Works

I booted up my computer this morning, dreading my email inbox. I've been on vacation for a week, gleefully ignoring all of my Blackberry's functions except the camera. It was nice to come back from a week away to see that MF Global customers will soon receive another distribution, bringing them up to 93% repaid.

For many of DTN's readers that were also MF Global customers, I know that it feels like you've been waiting far too long. Farmers, ranchers, elevators should never have had their money tangled up in the first place. But this additional release is important because it comes on the heels of a settlement between MF Global's two U.S.-based trustees (one from the MF Global's parent company) and the United Kingdom bankruptcy administrator. Roughly $600 million was transferred from the U.S. to the U.K. in MF Global's chaotic last days, and the rightful possession of that money held up bankruptcy proceedings for months. Now that that's settled, the case is starting to move forward again.

The timeline for the trustee's latest distribution isn't set yet; it still needs the court's approval. Also, a group of MF Global creditors filed a plan of liquidation that would bring all brokerage customers to 100% within months, IF approved and implemented by the court. So while the details are still pending, the wheels are starting to turn.

On the other side of MF Global debacle -- the concerns about regulatory oversight -- the deadline for commenting on proposed reforms has been extended. In November, the Commodities Futures Trading Commission proposed a rule to further protect segregated customer funds that included increased monitoring, auditing, disclosures and capital requirements. So far, CFTC has about 50 comments. If you'd like to read the rule and leave feedback, you can do that here: http://1.usa.gov/…

Posted at 9:59AM CST 01/14/13
Comments (2)
And yet still, Corzine the creep walks around free with no charges pending or forthcoming. How this guy got away with this is astounding.
Posted by Peter Smith at 10:58AM CST 01/14/13
If Anybody gets the chance watch the movie Margin Call. I think that pretty much sums up the additude about the crooks at Wall Street. Don't take this the wrong way hopefully there are a lot more good people at Wall Sreet than bad.
Posted by DAN SCHAEFER at 10:48AM CST 01/16/13
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