Best of luck to all MF Global employees who lost their jobs today... Mr Corzine and his desire to run a mini Goldman Sachs "prop-shop" under the guise of a customer business has cost them their jobs and us our money...
Friday 11 November 2011
Day 11: the futures clients get $300MM CME guarantees, the rest of us are left behind...
Today the clients of MF Global Inc., the regulated futures subsidiary of MF Global Holdings Ltd, achieved a major breakthrough with the CME providing up to $300 million of financial guarantees to their trustee (who looks exclusively after their interests and not of any other client/creditor of the other MF Global entities), see http://www.forbes.com/sites/steveschaefer/2011/11/11/cme-ponies-up-300-million-to-help-mf-global-trustee-deal-with-mishandling-of-funds/.
It is now clear that we, the clients and creditors of MF GLOBAL FX CLEAR LLC and of other unregulated subsidiaries of the parent company, have neither the support of the exchanges and the regulators afforded to the futures clients nor the muscle and influence of institutions like JPMorgan and BoA who sit in the committee of creditors of MF Global Holdings Ltd.
It is now clear that we, the clients and creditors of MF GLOBAL FX CLEAR LLC and of other unregulated subsidiaries of the parent company, have neither the support of the exchanges and the regulators afforded to the futures clients nor the muscle and influence of institutions like JPMorgan and BoA who sit in the committee of creditors of MF Global Holdings Ltd.
Tuesday 8 November 2011
Day 8: still totally in the dark...
The meeting of the creditors of MF Global Holdings Ltd was held at the Millenium Hilton yesterday (http://www.justice.gov/ust/r02/manhattan/org_meeting.htm) and apparently the U.S. Trustee's office appointed a committee of creditors of MF Global Holdings Ltd with JPMorgan Chase & Co, Bank of America, Wilmington Trust Company, Elliott Management Corporation and Caplin Systems as its members (see http://www.reuters.com/article/2011/11/08/mfglobal-bankruptcy-creditors-idUSN1E7A627A20111108).
However, because MF Global FX Clear LLC (along with numerous other subsidiaries of MF Global Holdings Ltd) has not been named so far in any bankruptcy proceedings, as it stands right now, we, the creditors/customers of MF Global FX Clear LLC have absolutely no representation, we have no clue whatsoever as to what has happened either to our funds deposited with MF Global FX Clear LLC or to our open trades with MF Global FX Clear LLC. In fact, there is now nobody answering the phones there as (understandably) employees are now focusing on their future and trying to find alternative employment (and even when they were answering the phones last week, they were sadly not in any position to provide us with any information).
It is important for all of us to understand that as customers of the subsidiaries of MF Global Holdings Ltd (or, as in my case, of a subsidiary of a subsidiary of MF Global Holdings Ltd!!!) we are NOT being represented by the committee set up yesterday to look after the interests of the creditors of the parent company MF Global Holdings Ltd (and rest assured that JPMorgan, Bank of America, etc. will look after themselves and not leave anything for us down the pecking order...).
So, we need to get organised and represent ourselves as the creditors of all the MF Global entities that (1) have NOT so far been named in the Chapter 11 filings and (2) have no representation by a trustee (as in the case of creditors of MF Global Inc.).
However, because MF Global FX Clear LLC (along with numerous other subsidiaries of MF Global Holdings Ltd) has not been named so far in any bankruptcy proceedings, as it stands right now, we, the creditors/customers of MF Global FX Clear LLC have absolutely no representation, we have no clue whatsoever as to what has happened either to our funds deposited with MF Global FX Clear LLC or to our open trades with MF Global FX Clear LLC. In fact, there is now nobody answering the phones there as (understandably) employees are now focusing on their future and trying to find alternative employment (and even when they were answering the phones last week, they were sadly not in any position to provide us with any information).
It is important for all of us to understand that as customers of the subsidiaries of MF Global Holdings Ltd (or, as in my case, of a subsidiary of a subsidiary of MF Global Holdings Ltd!!!) we are NOT being represented by the committee set up yesterday to look after the interests of the creditors of the parent company MF Global Holdings Ltd (and rest assured that JPMorgan, Bank of America, etc. will look after themselves and not leave anything for us down the pecking order...).
So, we need to get organised and represent ourselves as the creditors of all the MF Global entities that (1) have NOT so far been named in the Chapter 11 filings and (2) have no representation by a trustee (as in the case of creditors of MF Global Inc.).
Monday 7 November 2011
MF Global bankruptcy - a week later...
Fellow account holders and creditors of MF Global FX Clear LLC:
I decided to start this blog as I have been unable to get any information whatsoever about the status of my account and the funds I have at MF Global FX Clear LLC. Although I feel for the employees, sadly the Customer Support team at MF Global FX Clear LLC have been unable to give me any information as to where I stand (they did not even know which entity owns MF Global FX Clear LLC and if any parent-sub guarantees are in place, let alone being able to tell me when and if I will be able to get any money out).
With the exception of MF Global Inc., whose creditors are represented by James Giddens as a Trustee, no other MF Global Holdings Ltd. subsidiary has so far organised creditor representation (although my understanding is that a meeting of creditors is being held today at the Millenium Hilton Hotel in NYC).
I encourage anybody in a similar situation to contribute to this blog so that we can at least try and apply some collective pressure; I am worried that the efforts of exchanges, regulators, etc. are directed towards "saving" the regulated entity MF Global Inc. in order to minimise market disruption. This would mean that we, the creditors of the many unregulated entities in the complex corporate structure of MF Global, have been so far ignored and there is serious danger that our money is being used to plug the potential hole at MF Global Inc.
Anybody who has attended the meeting at the Hilton or has any information please post ASAP!
Finally, some useful links:
http://www.scribd.com/doc/71039486/MFGlobalBankruptcyDeclaration
http://www.mfglobalcaseinfo.com/
http://dm.epiq11.com/MFG/Project/default.aspx
http://www.forbes.com/sites/emilylambert/2011/11/06/angry-mf-global-customers-get-organized/
Finally, some useful links:
http://www.scribd.com/doc/71039486/MFGlobalBankruptcyDeclaration
http://www.mfglobalcaseinfo.com/
http://dm.epiq11.com/MFG/Project/default.aspx
http://www.forbes.com/sites/emilylambert/2011/11/06/angry-mf-global-customers-get-organized/
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