The latest news on the MF Global bankruptcy and fallout, published in the John Lothian Newsletter (subscribe here) the morning of December 19, 2011.

In the wake of the MF Global bankruptcy, John Lothian Newsletter has created a special section on JohnLothianNewsletter.com devoted to news, information and commentary. The section features archived news stories featured in the John Lothian Newsletter, analysis and breaking news. Check regularly for updates. See the MF Global news section here.

CFTC’s Sommers: MF Global Clients 1st In Line To Get Money Back
By Jacob Bunge Of DOW JONES NEWSWIRES
The U.S. regulator overseeing a probe into the collapse of MF Global Holdings Ltd. (MFGLQ) said Friday that the firm’s futures-trading customers will be first in line to get their money back as the failed brokerage is unwound. Following the path of MF Global customers’ money, where a shortfall has kept clients from being made whole, remains a work in progress, according to Jill Sommers, the member of the Commodity Futures Trading Commission overseeing the agency’s investigation into the matter. “The [CFTC] strongly believes that commodity customers have an exclusive right to commodity customer property above all other creditors,” Sommers said in statement issued Friday.

Commissioner Jill E. Sommers Responds to Concerned Customers of MF Global, Inc.
Press Release
http://jlne.ws/uDBVkf

MF Global prober: much to do before money returned
Reuters via Yahoo! News
(Reuters) – There is still a lot of work to do before hundreds of millions of dollars can be returned to customers of bankrupt MF Global , the woman leading the Commodity Futures Trading Commission’s investigation said on Friday.
http://jlne.ws/tujIU5

Corzine Knew Of Fund Transfer
By Aaron Lucchetti and Scott Patterson – WSJ
Former MF Global Holdings Ltd. Chief Executive Jon S. Corzine testified Thursday that he knew about an overseas transfer of funds that has come into focus as regulators and Congress seek to find out what became of an estimated $1.2 billion in missing customer cash.
http://jlne.ws/tieUfY

J. Christopher Flowers: Corzine’s Kingmaker
By Matt Koppenheffer | Motley Fool
Midway through 2008, when J. Christopher Flowers agreed to invest up to $300 million in MF Global (OTC: MFGLQ), the private equity magnate looked like the company’s savior. But even though the money was desperately needed at the time, it would bring with it a new, and ultimately disastrous, chapter in MF Global’s history.
http://jlne.ws/tEnBMD

Nebraskans caught up in MF Global distress
By RICHARD PIERSOL / Lincoln Journal Star
The bankruptcy of MF Global in a New York courtroom may seem like a distant din, just some more faraway ugliness on a pile of other big financial failures. But this one reaches into the heart of Nebraska agriculture’s recent prosperity and threatens to undermine the faith in and financing of the agriculture and food industry’s day-to-day risk management.
http://jlne.ws/w2rAj5

KPMG defends role over MF Global
By Philip Stafford in London – Financial Times
The administrator for the UK arm of MF Global has defended its handling of the return of funds to customers amid frustration by some that they have not yet received assets frozen after the failure of the US futures broker.
http://jlne.ws/rsMLlV

Sorting through the MF Global debacle
CNN Money
It’s been more than six weeks since the bankruptcy of Jon Corzine’s MF Global, and everyone from the FBI to Congress to frustrated customers is still trying to figure out what exactly went wrong. Here’s a quick primer on what happened, what’s at stake, and what we know so far:
http://jlne.ws/s05z45

CME Trust’s charity grants halt on MF failure
Reuters
CME Group Inc., which has given $22 million to Chicago-area schools and charities over the past five years, has stopped making grants through its main foundation, citing the collapse of MF Global Holdings Inc.
http://jlne.ws/u6SuOD

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