Commissioner Jill E. Sommers Responds to Concerned Customers of MF Global, Inc.

Dec 18, 2011

Over the past several weeks the Commission has received numerous inquiries regarding the priority of commodity customers’ claims in the MF Global, Inc. (MFGI) liquidation proceeding, and in the MF Global Holdings, Ltd. (the parent company) bankruptcy proceeding. The Commission strongly believes that commodity customers have an exclusive right to commodity customer property above all other creditors. This includes, without limitation, segregated property, property improperly removed from segregation that is still within MFGI’s estate, and property improperly removed from segregation that is no longer within MFGI’s estate, and is recovered by the Trustee. “To be very clear, if we find that customer property was transferred to the parent company, we will do everything within our power to return it to its rightful owners,” said Commissioner Sommers.

Additionally, with regard to customer concerns about the progress made on the analysis of MFGI’s books and records, Commissioner Sommers stressed that transfers of customer funds out of the Section 4d segregated accounts have been identified, and subsequent transfers of those funds are currently being traced, but there is still a lot of work to do. “We have dozens of auditors, investigators, and attorneys devoted to these matters, and the Commission is committed to pursuing the return of Section 4d customer funds to the fullest extent of the law. Getting customers back every cent they have lost is my number one priority.”

 

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