JP Morgan returns $168 million to MFGI trustee

Why so soon?

As a result of ongoing discussions between JP Morgan Chase Bank N.A ("JPM") and the MF Global Inc. (MFGI) trustee's professionals, JP Morgan has returned approximately $168 million in cash to the trustee. The $168 million represents the proceeds of excess collateral that JP Morgan held at the commencement of MFGI's liquidation and its return follows a cooperative reconciliation between the Trustee and JP Morgan.

The trustee continues to engage in discussions with JP Morgan regarding his other claims. In that connection, the return of the $168 million is without prejudice to the rights of JP Morgan or the trustee, and JP Morgan has retained a security interest in the $168 million to the extent that any of its allegedly secured positions become unsecured. The trustee believes that this recovery will assist him in his primary duty of recovering property for the benefit of MFGI customers.

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