{"id":5254,"date":"2011-12-14T00:00:00","date_gmt":"2011-12-14T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2011\/12\/bankruptcy_judge_grants_mf_glo"},"modified":"2022-04-20T13:43:35","modified_gmt":"2022-04-20T18:43:35","slug":"bankruptcy-judge-grants-mf-glo","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/bankruptcy-judge-grants-mf-glo\/","title":{"rendered":"Bankruptcy Judge Grants MF Global Permission to Use $21M from JPMorgan Chase"},"content":{"rendered":"

U.S. Bankruptcy Judge Martin Glenn says that MF Global Holdings Inc. can use approximately $21 million in cash collateral from JPMorgan Chase & Co<\/a>, which is its mortgage lender. In issuing this decision, Glenn overruled customer objections that this money could be part of the $1.2B that has gone missing from their accounts. MF Global and JP Morgan have arrived at an agreement over how the cash will be used.<\/p>\n

At the start of MF Global\u2019s bankruptcy, JPMorgan had already consented to let the brokerage firm use $26M. This was per an agreement that would give the investment bank a lien on all MF Global assets. <\/p>\n

It was just earlier this month that Glenn ruled that MF Global Inc. clients could recover 72% of what they lost when the broker-dealer filed for bankruptcy. Ruling against objections made by the brokerage firm\u2019s creditors, he approved trustee James Giddens\u2019 request. Per Glenn’s decision, MF Global\u2019s clients can receive another $2.2 billion distribution, which lets them get back .72 on the dollar.<\/p>\n

While the majority of the transfers were to go out within a few days, some were expected to take up to four weeks. In a separate decision, the Glenn approved transferring approximately 330 MF Global client securities accounts to Perrin, Holden & Davenport Capital Corp. MF Global has already moved approximately 38,000 commodities accounts to other financial firms.<\/p>\n

Glen plans to tackle the issue of physical goods distribution, such as silver and gold bars, next month. Clients have complained about not being able to get their share of ownership of such items, which cannot be physically divided. HSBC Holdings Plc (HSBA) has even filed a lawsuit against Giddens. The financial firm is trying to determine whois the owner of the 15 silver bars and five gold bars underlying several Comex contracts between a client and MF Global. <\/p>\n

Previous payouts to commodity clients are already at about $2 billion. However, some customers have said they didn\u2019t receive any money from these initial payments. <\/p>\n

In other MF Global-related news, CME Group has stopped issuing grants through its primary foundation in the wake of the brokerage firm’s bankruptcy filing. The Chicago-based commodities exchange had issued $22 million to Chicago-area schools and charities in the last five years. CME has said that it will continue to support charitable organizations through other corporate foundations and programs. <\/p>\n

In November, CME said it would give ex- MF Global customers the $50 million that was held by CME Trust. Originally meant to assist traders, the trust had turned into a primary source of charitable giving for the exchange operator. <\/p>\n

Exclusive: CME Trust’s charity grants halt on MF failure<\/a>, Reuters, December 18, 2011<\/p>\n

MF Global Wins Permission to Use JPMorgan\u2019s Cash as Judge Suggests Probe<\/a>, Bloomberg, December 14, 2011<\/p>\n

MF Global clients get back 72 cents on the dollar<\/a>, Bloomberg\/Investment News, December 9, 2011<\/p>\n


\nMore Blog Posts:<\/strong>
\n$1.2 Billion of MF Global Inc.\u2019s Clients Money Still Missing<\/a>, Stockbroker Fraud Blog, December 10, 2011<\/p>\n

MF Global Shortfall May Be More than $1.2B, Says Trustee<\/a>, Stockbroker Fraud Blog, November 26, 2011<\/p>\n

MF Global Holdings Ltd. Files for Bankruptcy While Its Broker Faces Liquidation and Securities Lawsuit by SIPC, Institutional Investor Securities Blog, October 31, 2011<\/p>\n

Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

U.S. Bankruptcy Judge Martin Glenn says that MF Global Holdings Inc. can use approximately $21 million in cash collateral from JPMorgan Chase & Co, which is its mortgage lender. In issuing this decision, Glenn overruled customer objections that this money could be part of the $1.2B that has gone missing from their accounts. MF Global […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3752,3958,4009],"tags":[],"class_list":["post-5254","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-jp-morgan-chase","category-mf-global"],"yoast_head":"\nBankruptcy Judge Grants MF Global Permission to Use $21M from JPMorgan Chase — Investor Lawyers Blog — December 14, 2011<\/title>\n<meta name=\"description\" content=\"U.S. Bankruptcy Judge Martin Glenn says that MF Global Holdings Inc. can use approximately $21 million in cash collateral from JPMorgan Chase & Co, — December 14, 2011\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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