J.P. Morgan Chase & Co. reached a settlement with MF Global’s trustee that will immediately return $546 million to the commodity futures broker’s customers and moves the firm closer to getting back an additional $600 million to customers who traded on foreign exchanges.
The settlement comes after New York-based MF Global filed for bankruptcy on Oct., 31, 2011, leading to the revelation of $1.6 billion in missing customer funds.
The settlement, which was filed in court Tuesday, has J.P. Morgan releasing claims on $417 million in MF Global funds that the large bank had previously returned to the trustee representing the commodity futures firm’s customers. In addition, J.P. Morgan is set to pay $100 million in additional funds to repay MF Global customers and return over $29 million to secure obligations under an MF Global credit facility, according to the settlement.
Finally, the J.P. Morgan agreement also speeds up the return of an additional $500 to $600 million to MF Global customers trading on foreign exchange because it resolves a major dispute held up by a U.K. bankruptcy administrator between the U.S. commodity futures firm and MF Global UK Ltd., the firm’s London unit.