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Bankruptcy Judge is Releasing $520 million to MF Global Customers

The judge that has been in charge of the bankruptcy of MF Global Inc. is approving, and releasing around $520 million to the trading customers within the brokering firm whose accounts were frozen since October 31 due to the bankruptcy. This means that 60 percent of the funds being awarded by the judge are going to be returned to customers in a group in their cash only bank accounts. This money is supposed to start moving to these accounts before Thanksgiving Day.

This can prove to be a difficult task due to the fact that there are over 38,000 accounts that were frozen, and these accounts all need to be verified before money can be placed within them. The judge wants to eventually reward all of the funds back to the accounts which is estimated to be close to $600 million. MF global is New York based, and is led by Jon Corzine, a former NJ governor. He also is known for being the CEO of Goldman Sachs. They made the one bet on European debt, and this was the wrong move for the company which led to their bankruptcy in October.

It is still under investigation on whether or not the company used money from private, clients accounts to float the business as their condition became worse. This is a violation of the security rules of the company, and of the law. The Chicago Mercantile Exchange are the ones in charge of transferring the money to all of the accounts. These accounts are used for trading, and this is an important aspect for the country.

 

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