The trustee liquidating MF Global Holdings's collapsed brokerage does not believe the brokerage will have enough money left over after paying back creditors to close any shortfall in customer accounts, according to a recent cnbc report.
The roughly $290 million in general estate funds — that is, money reserved for creditors that are not MF Global customers — may not be enough to make customers whole, James Kobak, an attorney for trustee James Giddens, said at a customer meeting in New York on Thursday.
Giddens has estimated that about $1.2 billion is missing from customer accounts at the brokerage. Some customers have argued that they should be allowed to make up for that shortfall by recovering money from the non-customer creditor pool.
"We might support that in certain circumstances, but at this point there simply isn't a substantial amount of general property available to make up for shortfalls," Kobak said….
Read more at http://www.cnbc.com/id/45973377
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