Friday, February 17, 2012

No MF Global customer cash in JPM account: trustee

(Reuters) - The trustee managing the assets of bankrupt MF Global Holdings Ltd said none of the roughly $26 million being used to fund the futures brokerage in Chapter 11 is part of a $1.6 billion shortfall in customer accounts.
In a report issued on Thursday in U.S. Bankruptcy Court in Manhattan, trustee Louis Freeh said the money, which was in one of MF Global's account at JPMorgan Chase & Co, does not contain money that should have been segregated for customers.
The scope of the report does not extend to whether customer money could have ended up with JPMorgan through other transactions, or transfers, or in other accounts with the bank.
JPMorgan is a key player in MF Global's bankruptcy because it served as the agent for a $1.3 billion loan as well as the clearing bank for some of its transactions. Some customers have speculated that a significant chunk of their missing money could be with JPMorgan.
The most vocal of those customers, James Koutoulas, said Freeh's report applies only to one account, something he says many customers may not understand.
http://news.yahoo.com/no-mf-global-customer-cash-jpm-account-trustee-220905237.html

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