In a move sure to outrage MF Global customers still waiting to get their money back from frozen accounts, a judge has approved a move for current and former MF Global executives to use up to $375 million provided by the bankrupt brokerage’s insurance company to pay their legal bills, according to the Wall Street Journal.Yes, that includes the disgraced former CEO, Jon Corzine—who has been selling everything from his Jersey penthouse to his vintage car in what many assume a desperate effort to raise money to pay for his defence lawyers.
What’s really angering some former MF Global customers—who are still waiting to get money back from their accounts—is the fact that they’ve also requested to use some of the money available through insurance, about $120 million, in order to be made more whole. The request, however, was rejected in court.
If it’s any concession—Judge Martin Glenn—who is overseeing the case in bankruptcy court—has put a $30 million limit on the amount of money from insurance that can be used towards paying for legal defence. Still, we can’t imagine former MF clients being appeased in anyway in light of the fact that money they might’ve received is going to help Corzine.