Customers at MF Global (MF.MU) failed broker-dealer unit, and oversee its liquidation trustee for the $ 54.6 billion U.S. dollars of the settlement, JP Morgan Chase (JPM.N: Quote) on Wednesday won court approval.
The settlement, announced in March, has been resolved claims levied by James Giddens, winding down MF's broker-dealer unit of MF Global's trustee and former clients through a broker, who is pursuing a federal action in 2011 over the collapse of MF Global.
$ 630 million U.S. dollars of sovereign debt risk of the investor on the market fears, commodity brokers, led by former New Jersey Gov. Jon Corzine, MF Global filed for bankruptcy.
Morgan settlement approval, one week later, Commodity Futures Trading Commission sued Corzine crash, and announced a $ 1 million settlement with MF's broker-dealer.
In a rare joint hearing in Manhattan, U.S. Bankruptcy Judge Martin Glenn, who is responsible for the liquidation, U.S. District Court Judge 维克多马雷罗, who presided over the class action, unanimously approved by JP Morgan Chase.
Marrero said: "I think the proposal fair and reasonable and in the best interests of the class,."
Giddens said the agreement will allow him eventually returned to 100% of customer funds were frozen when MF Global's bankruptcy. Most customers have to recover their funds about 90%.
JP Morgan has been the first U.S. $ 120 million revolving credit facility MF Global's parent company, and its main settlement banks, leading to its bankruptcy.
Under the settlement agreement, JP Morgan will pay $ 100 million, the former benefit customers. It also agreed to return more than 29 million U.S. dollars of funds brokerage, and the release of an earlier return to Giddens $ $ 417 million in claims.
The latest settlement also tied a loose Giddens settlement with MF Global UK unit, announced earlier this year ends. That settlement, expected to bring $ 500 million to $ 60 billion of the broker-dealer's estate, you need a resolution, JPMorgan requirements.
"Overall solution to unlock more than 10 billion yuan, customers and other creditors," James Kobak, Giddens's chief lawyer said on Wednesday trial.
The bank will be a separate $ 7.5 million to pay attorneys' fees and expenses of Class Counsel on behalf of clients, court documents show. Marrero Wednesday approved cost.
These cases are in Re: MF Global, U.S. Bankruptcy Court, Southern District of New York, No. 11-2790, DeAngelis v. Corzine, U.S. District Court, Southern District of New York, No. 11-7866.
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