JPMorgan Chase & Co (NYSE:JPM) shells out $100 million to MF Global
Northern, WI 03/21/2013 (avauncer) - A unit of JPMorgan Chase & Co (NYSE:JPM) (Current: $49.12, Down by 0.16%)has reached a settlement worth $100 million with MF Global Holdings Ltd (PINK:MFGLQ) ( Current: 0.0700, Up 7.53%) liquidators. This in connection with the conduct of the bank in the period before and after the collapse of the brokerage. This has paved the way for returning money to its former customers. A year of negotiations and reviews of over 100,000 documents have preceded the agreement which resolves any claims from JPMorgan Chase & Co (NYSE:JPM) that are attributed to transfers of property of customers in the days prior to MF Global going bankrupt.
Misstep in trading
MF Global Holdings Ltd (PINK:MFGLQ) was once run by former New Jersey governor, Jon Corzine the co- chairman of Goldman Sachs Group, Inc (NYSE:GS) (Current:$150.13, Up by 0.87%). In 2011 it filed for bankruptcy after a $6.3 billion trade on behalf of itself with bonds of a few of the most indebted countries in Europe, went wrong. A majority of client funds were held by JP Morgan in various accounts and the bank was the main lender to the parent company before its collapse. This was America’s eighth largest bankruptcy. Not only was JP Morgan the agent for a $1.2 billion loan amount to the MF Global parent company but had loaned money to other affiliates and well as brokerages.
Both, the parent as well as the brokerage went into bankruptcy separately. The agreement announcement now resolves all matters that were outstanding between JPMorgan Chase & Co (NYSE:JPM) and MF Global Holdings Ltd (PINK:MFGLQ), its creditors and customers said a spokesperson for the bank, Jennifer Zuccarelli.