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IPFS News Link • Corruption

MF Global May Not Be Able to Pay Clients Back: Trustee

Former customers of MF Global Holdings' collapsed brokerage were disappointed to hear on Thursday that the trustee hunting for funds missing from their accounts has no immediate plans to transfer more money to them. 
More than 250 customers met in New York on Thursday with James Giddens, the trustee in charge of liquidating the brokerage and returning money to customers, for an update on the status of his investigation into what may be $1.2 billion missing from their accounts.

Giddens and his team of lawyers said they may not be able to make another mass transfer of funds above the roughly $3.8 billion they have already paid out. That figure represents about 72 percent of the total money held in customer accounts when the firm went under, leaving many customers still thousands or millions of dollars out of pocket.

"At this point we're not in a position to do another bulk transfer," said James Kobak, a attorney for the trustee. "That situation might change as we get through the claims process. It would also depend on our ability to recover additional assets."

1 Comments in Response to

Comment by Powell Gammill
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It is kind of hard to pay back what you stole and transferred over to Goldman Sachs.