“Ever since the collapse of MF Global, the search for $1 billion of the brokerage firm’s customer money evoked one ominous metaphor after another, including “uphill battle” and “magical mystery tour.”
“But on Thursday, the search ended with a different saying: “Checks are going in the mail.”
“James W. Giddens, the court-appointed trustee overseeing the return of customer money, announced that he was sending a final round of checks to make MF Global’s customers whole. The payout, which a bankruptcy court judge initially approved late last year, capped a stunning turnaround from MF Global’s bankruptcy filing in October 2011, when such a recovery seemed a long shot at best.”
“When MF Global failed more than two years ago, few thought a way could be found to make customers whole,” Mr. Giddens, a partner at the law firm Hughes Hubbard & Reed, said in a statement. “This is the result of herculean efforts by many professionals.”
“The payouts, which will be sent on Friday, provide a happy bookend to a disastrous Wall Street saga.”
“The problem for MF Global — which was run by Jon S. Corzine, formerly New Jersey’s governor — became apparent in the firm’s final days. In a fight for survival, MF Global improperly transferred customer money to its banks and clearinghouses, violating a cardinal rule of the financial industry.”
Read full New York Times article here.