Shocker: MF Global Inc.’s commodity customers may be required to share some of their cash with other clients unless money missing from some accounts is found, said the head of the group overseeing the liquidation of the broker-dealer.
“Distribution of the assets will be pro rata, if there’s insufficient there to fulfill all obligations,” said Stephen Harbeck, president of the Securities Investor Protection Corp., or SIPC.
About $593 million in commodity customer funds are unaccounted for, according to a person with knowledge of regulatory probes into the failure of the New York-based firm.
The trustee liquidating the brokerage, James W. Giddens, has transferred 17,000 accounts to other firms, out of 50,000 commodity accounts that he said he would relocate, while releasing almost $1.6 billion in collateral, said Kent Jarrell, his spokesman. Many remaining accountholders may have to file claims for their assets, which have to be shared fairly with other claimants, Jarrell said.
Find out more at http://www.businessweek.com/news/2011-11-09/mf-global-clients-may-be-required-to-share-cash-sipc-head-says.html
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