MF Global trustee says clients may be made whole

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Associated Press

Posted on February 4, 2013 at 7:02 AM

Updated Monday, Feb 4 at 7:02 AM

NEW YORK (AP) — Former brokerage customers of MF Global could fully recover cash that was frozen when the trading firm collapsed.

That's according to the bankruptcy trustee in the Chapter 11 case. A court filing on Saturday by the trustee, former FBI Director Louis Freeh, outlines a potential range of recovery based on the latest projections of assets versus claims.

That range is from a potential shortfall of $6 million to a surplus of $120 million. If there's a surplus, customers whose money was frozen when MF Global collapsed could get a full recovery.

The case is pending before a bankruptcy judge in New York.

MF Global was headed by former New Jersey Governor and U.S. Senator Jon Corzine. It collapsed in Oct. 2011 after making a disastrous bet on European debt.

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