James W. Giddens, Trustee for the liquidation of MF Global Inc. (MFGI), today initiated the final, cumulative 95% distribution on all non-affiliate, non-subordinated, allowed general unsecured creditor claims, by mail and other distribution methods.
MF Global Inc. Trustee James Giddens declared the liquidation of MFGI "essential complete" after gaining approval of a final 95% distribution to allowed unsecured creditors on top of the 100% distribution ($6.9 billion) for customer claims.
Traders have been taking losses for centuries but the rogue trader, capable of taking down centuries-old institutions in a matter of weeks, is a relatively new phenomenon...
The secured claims consists of mainly employee wage priority claims and CME Group claims; the unsecured general creditor claims include claims filed by introducing brokers, trade vendors, employees, and others according to the spokesman.
Glenn said earlier this year that he expected an initial $30 million allocation to cover all costs. But with the total now approaching double that, the matter hasn’t moved past discovery yet.
This was no small fraud. Coming on the heels in the MF Global debacle, it threatened the entire futures industry structure. One fraud and violation of customers segregated funds is an anomaly, two might be considered a trend.
Dodd-Frank was passed in 2010 but new CFTC authority to pursue fraud and manipulation are just coming on line. What will they do with it and what will it mean for the industry.
