MF Global Parent Trustee to Share Some Information in ‘Public Interest’
MF Global Holdings Ltd (MFGLQ). will share some information about the company’s communications in the final days before its bankruptcy to satisfy the “public interest,” its Chapter 11 trustee said.
Louis Freeh, the trustee, continues to assert attorney- client privilege for certain information, according to papers filed today in U.S. Bankruptcy Court in Manhattan. Freeh agreed to waive the privilege for documents, communications or information on certain subjects from Oct. 17 to Oct. 31, when the company filed for bankruptcy.
“The court has determined that it is in the public interest for the above-referenced documents, communications and information related to the foregoing subject matters also to be made available to the governmental authorities,” lawyers for Freeh wrote in court papers.
A judge also found it to be in the public interest for the information to be shared with James Giddens, who was appointed under the Securities Investor Protection Act to oversee a related wind-down of the company’s former brokerage unit, MF Global Inc. The information sharing relates to subjects including the segregation of funds at MF Global Inc., according to court papers.
“We applaud the decision by Mr. Freeh,” Kent Jarrell, a spokesman for Giddens, said in a statement. “We had been working with Freeh’s office since December to try to get an agreement, which will help all the investigations currently under way into the demise of MF Global.”
Congress, the Commodity Futures Trading Commission, the Securities and Exchange Commission and U.S. attorneys offices in New York and Chicago also have been investigating MF Global.
MF Global Holdings (MFGLQ), run by former Goldman Sachs Group Inc. (GS) co-chairman Jon Corzine until his Nov. 4 resignation, filed the eighth-largest U.S. bankruptcy after a wrong-way $6.3 billion trade on its own behalf on bonds of some of Europe’s most indebted nations. Its bankruptcy filing listed assets of $41 billion and debt of $39.7 billion.
While Freeh is overseeing distributions to creditors through the Chapter 11 bankruptcy, Giddens is handling returns to customers through a process mandated by the Securities Investor Protection Act.
The brokerage case is Securities Investor Protection Corp. v. MF Global Inc., 11-02790, U.S. District Court, Southern District of New York (Manhattan). The parent’s bankruptcy case is MF Global Holdings Ltd., 11-bk-15059, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
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