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Commentary by Bob Zwirb

The U.S. Bankruptcy Court overseeing the liquidation of failed futures commission merchant MF Global Inc. ("MFGI") has approved a settlement between MFGI and a class of former customers of MFGI for the return of $100 million of customer money to the class. The agreement resolves claims against JP Morgan, and all outstanding matters between JP Morgan and the MF Global estate, its customers and creditors, which arise from transfers of customer property during the days before MF Global entered into bankruptcy. See: Deangelis v. Corzine Settlement Agreement (03-19-2013); Deangelis v. Corzine

After a year-long investigation into MF Global's demise, the House Committee on Financial Services found that a series of decisions by Jon Corzine to turn MF Global into a full-service investment bank led to the company's bankruptcy and jeopardized customer funds. According to the investigative report, Corzine dramatically changed MF Global's business model without fully understanding the risks associated with such a radical transformation. Specifically, by expanding the company into new business lines without first returning its core commodities business to profitability, Corzine ensured that