'Trustees settle over MF Global assets'

[Wallace]

by Philip Stafford in London
"The trustees fighting over the estate of MF Global have reached a settlement over its
assets, in a move that paves the way for an earlier-than-expected return of more
money to the failed US futures broker’s customers.
The agreement between James Giddens, the trustee of the US business, and KPMG,
which is administering the UK unit is set to prevent a key part of the complex
resolution from going in front of a UK court in April. It is also likely to bring to an end
two other court cases between the parties related to the estate.
Under the terms of the settlement, between $500m-$600m will be returned to the US
parent company. The deal must be approved by a US bankruptcy judge, with the case
expected to be heard at the end of January."
http://www.ft.com/cms/s/0/e54fc1e6-4c65-11e2-af2c-00144feab49a.html#axzz2FvOTlxQP

 

[maxpi]

My understanding is that Canadians had their money back overnight. The US is a third world entity after all the decades of mindless deregulation.

 

[Wallace]

in Canada we have the CIPF - Canadian Investor Protection Fund - http://www.cipf.ca/HomePage.aspx
which insures client accounts of registered brokers including forex up to the sum of
C$1,000,000
'the day after' was the CIPF making a Canadain bankruptcy court claim against MFG -
The Globe and Mail - Nov 25/11 by Nicolas Johnson:
"Foreign-exchange clients of MF Global Canada Co. will get all their money by Dec. 2
after having been excluded from an earlier agreement, said the trustee for the
bankrupt brokerage.
The Ontario Superior Court of Justice has authorized cash payment to MF Global’s
2,500 foreign-exchange clients, KPMG Inc., the court-appointed trustee, said Friday.
KPMG had said a week ago that it aimed to make the payment by Nov. 30."
http://www.theglobeandmail.com/glob...ts-to-get-money-back-by-dec-2/article4252508/

MFG's bankruptcy was a result of them using the UK in order to circumvent the US
'rehypothecation' regulations - see:
Dec 17/12: by Elaine Knuth: 'Trustees bicker as MF Global customers wait'
"Under UK law, customer funds and securities may be rehypothecated, lent out to
third parties, who may in turn also lend out the securities and funds. In some
countries, such as Canada, this practice is banned altogether. In the United States it
is limited.
This ability to lend out customer assets without limitations
is an incentive for global institutions to place customer assets in the UK."
http://www.futuresmag.com/2012/12/17/trustees-bicker-as-mf-global-customers-wait?t=financials

"third world entity " or not maxpi, what US futures and forex clients need is INSURANCE

 

[dangerkitty]

Quote from maxpi:

My understanding is that Canadians had their money back overnight. The US is a third world entity after all the decades of mindless deregulation.

Yes, I'll agree. Was with MFG and PFG, the precident has been set that a company can take your assets without repercussions. In effect, any bank can take, use and lose your segregrated money, checking, savings or whatever.

It sure wasn't set in stone that they can't, did you see any procescutions, jail sentences for anyone at MFG? I'didn't.

I took the 94% buy out of my MFG accout, just wanted to get out, I'm glad that the trustees are trying to settle up to close out the MFG debacle.