Friday News Dump: MF Corzine Actually Lost $1.6 Billion

Posted by on Feb 10, 2012 at 7:04 pm

Hey, what’s another $400 million when you’re a well-connected liberal Democrat?

The trustee supervising the liquidation of MF Global Holdings’ brokerage said Friday that more than $1.6 billion in customer cash remains out of his grasp, more than previously estimated.

The figure was revised upward from the previous $1.2-billion estimate largely because of the way the trustee, James Giddens, is defining various chunks of money left behind — or still missing — after the broker-dealer’s late-October collapse.

Included in Giddens’ estimate for the first time is approximately $700 million in client money seen residing in the UK that is likely to be the center of a legal fight with KPMG, the UK-based administrator overseeing the unwind of MF Global’s London-based division.

“We now know we’re in for a long haul with the UK administrator,” said a spokesman for James Giddens, the court-appointed trustee for MF Global’s brokerage in New York.

Giddens this week was cleared by US bankruptcy court to hire Slaughter & May, a London law firm, as the process of securing funds from MF Global’s foreign-based operations plays out.

Even better news for Corzine? The story doesn’t even mention his name! Now that’s some teflon. It’s no longer Name That Party, it’s Name That Perp. Don’t forget who it was Team Obama called for economic advice.

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