MF Global customers are MFed (mostly f**ked)

[marmar]

(Bloomberg) MF Global Inc. brokerage customers, who may be missing more than $1.2 billion from their accounts, won’t be allowed to form a committee to represent their interests in bankruptcy court, a judge ruled.

Customer accounts believed to hold $5.45 billion were frozen Oct. 31, the day after the New York-based company reported a shortfall in funds that are required to be segregated under rules of the U.S. Commodity Futures Trading Commission. A previous estimate of about $600 million in missing funds was raised to $1.2 billion yesterday by James Giddens, the trustee appointed to liquidate the company and distribute refunds to customers.

Judge Martin Glenn, overseeing a hearing today in Manhattan Bankruptcy court, said he will deny commodity customers’ request to form an official committee. He urged the trustee to work closely with commodities customers.

“With 38,000 customers, for them to have an effective voice, there needs to be some agreed organizational structure that will allow them to be heard by the trustee,” Glenn told a lawyer for the trustee. Glenn said there were no legal precedents that would let a bankruptcy court grant the official committee. ..............(more)

The complete piece is at: http://www.bloomberg.com/news/2011-11-22/mf-global-1-2-billion-shortfall-estimate-could-still-rise-1-.html

[xchrom]

1. recommend

[DCKit]

2. We'll see new laws and re-regulation when Congress takes a personal hit.

Until then, I'm not holding my breath.

[Hotler]

3. Got to let the Free Markets run their course... eom

[Myrina]

4. Once the uber-rich start getting screwed/robbed, then OWS will be 'relevant' ....

... to the media and politicians. Until then, us little people don't matter.