is part of the Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

  • American Agriculturist
  • Beef Producer
  • Corn and Soybean Digest
  • Dakota Farmer
  • Delta Farm Press
  • Farm Futures
  • Farm Industry news
  • Indiana Prairie Farmer
  • Kansas Farmer
  • Michigan Farmer
  • Missouri Ruralist
  • Nebraska Farmer
  • Ohio Farmer
  • Prairie Farmer
  • Southeast Farm Press
  • Southwest Farm Press
  • The Farmer
  • Wallaces Farmer
  • Western Farm Press
  • Western Farmer Stockman
  • Wisconsin Agriculturist
MF Global Execs Get Financial Aid

MF Global Execs Get Financial Aid

Court rules that former company employees can tap insurance fund for legal help.

MF Global, the gift that keeps on giving, to farmers and the grain trade saw another development this week. U.S. Bankruptcy Judge Martin Glenn, in Manhattan, ruled that former executives can tap up to $30 million of an insurance fund to help with legal fees.

The insurance fund, which MF Global customers were trying to preserve to help cover damages caused when the firm "misplaced" $1.6 billion in client money, is now open to executives (in that limited way) for their use.

INSURANCE FOR THE DEFENSE: Former execs can tap up to $30 million in insurance funds to help pay for defense against as many as 20 pending lawsuits.

The judge issued a 32 page decision on the matter, noting that the "soft cap" $30 million for defense cost was appropriate. Glenn also noted the potential hardships for those execs that would be suffered if they were denied access to the funds.

The ruling does not address whether the insurance proceeds actually belong to former customers. About $375 million in insurance proceeds are available, and claims have been submitted against that amount. And the judge says that customers are qualified to object to payment of defense costs.

There are more than 20 lawsuits against former executives that wire reports say could be consolidated.

MF Global filed for bankruptcy on Oct. 31 after a $6.3 billion position on European bonds brought regulatory concerns, a credit downgrade and margin calls.

Opponents to the insurance ruling have said no money should go to help those that caused the problem in the first place. This mess continues to unfold, and has had far-reaching impacts on how farmers trade and their trust of the system that has always protected customer segregated funds.

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.