A few weeks ago, a New York bankruptcy judged ruling on an MF Global request, agreed to release $30 million in insurance funds so former employees would have cash to pay legal fees as they defend themselves against the fallout from this major corporate collapse. Soon after, a group of plaintiffs sued to block access to those funds.
However, Judge Martin Glenn, U.S. Bankruptcy Court, Manhattan, refused to put the funds' release on hold while the plaintiffs appealed the April 10 decision to let executives use those funds. Former customers say the funds should be set aside to help cover the $1.6 billion losses sustained when MF Global collapsed. Check out the whole story.
Winners and Losers
Any case like the MF Global debacle carries with it some winners and losers. The country brokers that have folded, the farmers who now are even more defensive in their use of brokerage firms and those that lost money are in the negative side, but some are smartly benefitting.
Financial News reports that ADM Investor Services, one of the London brokerages on the beneficiary end of the bankruptcy has reported a 20% jump in profits for 2011. The office, which is a subsidiary of U.S. based ADM, is showing the profit increase in Europe. Check out the whole story.
Special Counsel for MF Global?
Rep. Michael Grimm, R-N.Y., is circulating a letter in Congress calling for the appointment of an independent counsel to investigate the failure of MF Global. Grimm is a member of the House Financial Services Committee and a former FBI agent who investigated Wall Street for financial fraud. The letter began circulating this week, according to Fox Business.
The news service is reporting that the letter is designed to address allegations of conflict of interest in the ongoing investigation, including one by the Commodities Futures Trading Commission. Check out the whole story.