MF Global Holdings Ltd. brokerage customers, facing a $1.6 billion gap in funds, will probably recoup at least 90 percent of their money, according to James W. Giddens, the trustee overseeing the unit’s liquidation.
“I think we’re comfortable saying that additional distributions should certainly be in the 90 percent range,” Giddens said today at a U.S. Senate Agriculture Committee hearing in Washington. “It’s going to be an uphill fight to get, as I indicated, to 100 percent.”
Giddens commented after Louis Freeh, bankruptcy trustee for MF Global’s holding company, said it was his belief that customers would eventually recoup all their money.
“All of the customers of MF Global Inc. eventually will be made whole” by the brokerage trustee, Freeh said in testimony submitted for the hearing, which he isn’t attending.