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Missing MF Global funds located, recovery complicated

MF Global trustee James Giddens says investigators have tracked down the $1.6 billion in customer funds that disappeared after the firm’s collapse. Analysis of what happened and where the money went has substantially concluded, but Giddens says getting the money back is complicated. He says the company is aggressively pursuing recovery of the funds, with a goal of getting back as much as possible.

Based on testimony to the Senate Banking Committee, Giddens supports fining executives when commodities brokerages lose customer money. Where there’s a shortfall in customer funds, Giddens says Congress should consider making company officers and directors accountable and personally and civilly liable. Giddens has said that he may bring civil lawsuits against MF Global executives for breach of fiduciary duty and other alleged violations.

The NAFB News Service contributed to this article.