MF Global Clients Accuse JP Morgan Of Overreaching In Bankruptcy
November 14 2011 - 1:13PM
Dow Jones News
A group representing former customers of MF Global Holdings Ltd.
(MFGLQ) on Monday charged that J.P. Morgan Chase & Co. (JPM) is
trying to unfairly claim their assets in a court tussle over the
remains of the bankrupt broker-dealer.
The Commodity Customer Coalition, which said in a statement
Monday that it "informally" represents more than 2,500 clients of
MF Global, objected to the idea that they be required to shoulder
the firm's losses after an estimated $600 million was discovered
missing from customer accounts, raising the possibility that MF
Global mixed the funds with its own money.
"We're simply asserting that if MF Global comingled funds from
customer accounts, or cannot properly account for them, J.P. Morgan
can't lay claim to those funds as if they were their own," said
James Koutoulas, chief executive of Typhon Capital Management LLC,
a former client of MF Global who has led the organization of other
customers.
"Moreover, since there is excess equity in MF Global's estate,
that money has to go to customers to make them whole, it's that
simple," Koutoulas said in a statement.
A spokesman for J.P. Morgan was not immediately available for
comment.
The group also seeks to put a customer representative onto the
creditors' committee as MF Global's bankruptcy plays out, according
to the statement.
-By Jacob Bunge, Dow Jones Newswires; 312 750 4117;
jacob.bunge@dowjones.com
JP Morgan Chase (NYSE:JPM)
Historical Stock Chart
From Mar 2024 to Apr 2024
JP Morgan Chase (NYSE:JPM)
Historical Stock Chart
From Apr 2023 to Apr 2024