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Judge Martin Glenn approved MF Global trustee James Giddens’ request to transfer some 60% of money in cash-only accounts back to MF Global clients. [via Reuters, DealBook]The $520 million to be transferred should provide relief to battered customers, though they are not still not being made whole.
Bloomberg also points out that customers that tried to withdraw money before the bankruptcy and had their checks bounce still won’t be able to get their money back as part of this release process.
Some 22,000 clients will be able to access the released funds by November 21, according to Reuters. There were $869 million frozen in cash-only commodity accounts, after the release of the funds, there will still be $349 million left.
After the discovery of $600 million missing from customer segregated accounts following MF Global’s bankruptcy Oct. 31, all client accounts were immediately frozen by the trustee. Accounts that held open positions were transferred to new brokers, but with only 60% of the collateral.
Also on schedule today — the trustee will to meet with MF Global clients, per a judge’s request. That should be fun.
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