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Pacts in MF Global liquidation could free up cash

Published on NewsOK Modified: December 22, 2012 at 5:06 pm •  Published: December 22, 2012
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Due to litigation, just 10 percent has been distributed so far out of the $2.5 billion that's been collected for those customers, Heis said.

With the agreements in hand, "we will move quickly to get money in agreed claimaints' pockets at the earliest opportunity," Heis said.

Giddens has been combing through the accounts of MF Global since it filed for bankruptcy protection in October 2011. MF Global, which was headed by former New Jersey Gov. Jon Corzine, collapsed after making a disastrous bet on European debt.

Regulators have been investigating whether MF Global tapped money from clients' accounts as its financial condition worsened. That would violate securities laws. Brokerages are required to keep customer money separate from the firm's money.

Much of the money that went missing belonged to farmers, ranchers and other business owners who used MF Global to reduce their risks from the fluctuating prices of commodities such as corn and wheat.