MF Global Unit Administrator Says 90% of Funds Recovered
Administrators of MF Global Holding Ltd.’s U.K. subsidiary said that one year after the brokerage firm collapsed they have recovered about 90 percent of funds belonging to the unit’s clients and 75 percent of assets due creditors.
About 570 million pounds ($920 million) has been recovered from client accounts, while 900 million pounds was obtained for creditors, KPMG LLP partner Mike Pink said yesterday at the London Institute of Directors during an evening event organized by MF Global’s U.K. clients.
“It’s been an incredibly stressful time” for MF Global’s U.K. clients, U.K. lawmaker Mark Field said at the event. Field told attendees that the British government and the Financial Services Authority are considering rule changes to ensure clients can get money back quickly in the event of insolvency.
KPMG has agreed to pay 26 cents on the dollar to clients with protected accounts, and hasn’t yet made a distribution to creditors. U.S. trustees of the holding company and its affiliates have sued KPMG seeking assets of about $1 billion.
The accounting firm said it won’t be able to return more until the legal disputes with MF Global’s U.S. entities are resolved. If KPMG prevails, Pink said, it could potentially return all of the money being claimed by the U.K. unit’s creditors and clients, and still have money left over.
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