MF Global Trustee Says Customers May Get Insurance Proceeds

MF Global Inc.’s brokerage customers may be able to recover some of their lost funds from insurance proceeds meant to pay defense costs of the failed brokerage’s directors and officers, said a trustee overseeing the brokerage’s wind-down.

James Giddens, the trustee, said proceeds of so-called directors and officers insurance may provide a source of recovery for any shortfall in customer accounts. Claims from individual customers or from the trustee himself could help recover them, he said in court papers filed in Manhattan bankruptcy court yesterday.