Thursday, November 24, 2011

MF Global clients burned 2X

Folks who got stuck with bum checks from Jon Corzine’s defunct brokerage firm MF Global are getting bounced a second time, the NY Post reports. This time, it’s by the MF Global trustee’s claims process — set in motion yesterday to help burned customers get their money back.

The claims process allows those with accounts to recover 60 percent of the $5.5 billion in MF’s accounts frozen after it emerged that $1.2 billion was missing from accounts that should have been segregated, and therefore safe.
But folks who cashed out of their MF brokerage accounts leading up to the Wall Street firm’s Halloween collapse — and received checks from MF for their account balance, only to see them bounce — are not addressed by the claims process, The NY Post has learned.

Potentially hundreds of people with an estimated $50 million in claims are in this limbo.


Read more: http://www.nypost.com/p/news/business/mf_claims_go_missing_JjJOyx2yBXc25XTeKN9sJI

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