The trustee for MF Global Inc. reported today that he has secured $168 million from JP Morgan as a result of ongoing discussions between JP Morgan and the trustee. Trustee spokesman Kent Jarrell said that the $168 million was unrelated to other claims that the trustee had announced on April 4, that it was “engaged in substantive discussions” with JP Morgan over. Jarrell added that the $168 million was not part of the $1.6 billion in non-recovered customer funds.
According to a statement by the trustee, “The $168 million represents the proceeds of excess collateral that JP Morgan held at the commencement of MFGI's liquidation.”
Regarding the money, Jarrell added, “Some supported clearing activity, some supported securities lending activity, with the remainder related to other prop trading activities.”
Jarrell would not comment on when JP Morgan informed the trustee that they were holding this collateral but apparently it wasn’t until recently because it was not part of other claims that were being discussed.
“When we found out about [this money], we requested it and we got it,” Jarrell says.