JP Morgan’s collateral issues just got worse.
The troubled bank reportedly has relented and will return $600 million in stolen MFGlobal client funds to the MFG trustee, 7 months after MFG’s bankruptcy.
While this is clearly a major victory for MF Global clients (including several SD readers who are still missing over $100,000 in their private accounts), what about the missing 1.4 million ounces of physical silver?
NEW YORK (AP) – JPMorgan Chase has returned about $600 million that was held at the bank when securities firm MF Global Holdings Ltd. failed last fall, according to a news report.
The Wall Street Journal also reported Saturday that a bankruptcy trustee representing MF Global’s customers might pursue JPMorgan for several hundred million dollars in additional claims.
The newspaper cited unnamed people familiar with the matter and with the investigation into MF Global’s collapse.
MF Global failed in October after a calamitous bet on European debt spooked its investors, partners and clients. The collapse left an estimated $1.6 billion hole in customer accounts at MF Global.
The recovered money will eventually be passed along to customers.
JPMorgan declined to comment. A call to a representative for bankruptcy trustee James Giddens wasn’t immediately returned.