Money in the Pipeline for Hapless MF Global Customers and 4 Other Hot Stocks
JP Morgan Chase & Co (NYSE:JPM) and James Giddens, the trustee liquidating the failed and bankrupt MF Global Inc, have arrived at a $546 million settlement that could allow sums to be repaid to the broking firm’s customers. The bank will pay $100 million that will be distributed to MF global customers, and release claims on $417 million that it had paid previously to the trustee. About $29 million of the brokerage’s funds, so far held by JPMorgan, would also be returned. “The settlement agreement resolves claims by the trustee and customer representatives against JPMorgan that would otherwise result in years of costly litigation between the parties with an uncertain outcome,” Giddens said in the court filing related to the settlement. This clears the way for the bankruptcy court to permit distribution of about $300 million to MF global customers.