U.S. Trustee Faults MF Global Customer Committee Proposal
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A proposal by broker-dealer MF Global Inc. commodity customers for a committee to represent their interests was opposed by the arm of the Justice Department that oversees bankruptcy cases.
A group of commodity brokers proposed a committee to help recover money missing from their accounts, requesting that the bankrupt estate pay its legal fees. Such a committee shouldn’t be confined to commodity customers, and the “improper relief sought” for payment might have a bad effect on other liquidations, Tracy Hope Davis of the U.S. Trustee’s office said in a court filing today in U.S. Bankruptcy Court in Manhattan.