Another $220 million was transferred inadvertently from the accounts of securities customers to those of commodities customers. That money is now in limbo amid a dispute over which customers it belongs to, said Kent Jarrell, a spokesman for Giddens.
The final $680 million or so was transferred to other financial institutions with which MF Global did business, including a substantial portion that went to JPMorgan.
Louis Freeh, the trustee for MF Global's parent company, which is involved in a separate investigation (and is seeking to recover funds for creditors), also testified at the Senate hearings. He addressed whether or not MF Global will face fraud or other charges for their roles in the collapse. “At this point, literally everything is on the table, both individual persons as well as institutions,” Freeh said. CNN reports that Giddens may file civil claims against MF Global executives, including Corzine, for breach of fiduciary duties and violations of federal law governing commodities trading.
To date, MF Global customers have recovered about 70 percent of their money and will collect more soon, as a Manhattan bankruptcy judge approved on Tuesday another distribution that will push the total amount recovered to 80 percent.
Customers will have to wait longer for a pound of Corzine's flesh.