Market News

Bankruptcy judge approves MF Global settlement

A bankruptcy court judge has approved a settlement that will help MF Global customers recover over 90 percent of the $1.6 billion that disappeared from the firm after its collapse in 2011.  Bloomberg reports New York Bankruptcy Judge Martin Glenn approved the settlement with a UK affiliate. 

Glenn says the deal will help boost recoveries for the former brokerage’s customers.  “The settlement is beneficial for the estate and fully satisfies the standards for approving settlements,” he says. 

In a statement released Friday, Senate Ag Committee Chairwoman Debbie Stabenow says she is pleased with the settlement.  “This is an important step, but I will continue to fight for customers to get more money back, as well as holding wrongdoers accountable,” she says.  “We need to ensure that customers are protected and that the markets are safe and functioning as intended.”

MF Global’s failures resulted in the loss of customer funds and Stabenow called it a devastating blow to customer confidence in the futures markets.