J.P. Morgan Starts Plugging MF Global Hole

Banking, finance, and taxes

Published: March 20, 2013 11:30 am

Last Updated: April 28, 2020 12:22 am

In a settlement reached late yesterday, J.P. Morgan Chase & Co. (NYSE: JPM) has agreed to return $546 million to investors of now-bankrupt MF Global. The settlement also brings another $600 million closer for customers who traded with the failed broker on foreign exchanges. Remember, a total of $1.6 billion in customer funds went missing after MF Global filed for bankruptcy in late October of 2011.

J.P. Morgan has released its claims on $417 million in MF Global funds that had been returned to the bankruptcy trustee. The big bank also kicked in $100 million in added funds to pay MF Global’s customers and will return $29 million related to obligations it had incurred under an MF Global credit facility.

The $600 million repayment for customers who used foreign exchanges has been delayed by differences between U.S. and U.K. bankruptcy laws.

Alas, all $1.6 billion is unlikely to be returned to MF Global’s customers. According to the trustee, if the deal announced yesterday is approved, U.S. customers of MF Global could receive “several percentage points” more than 93% of what is owed to them. Customers who used foreign exchanges can look for repayment totaling several points above a range of 75% to 82%.

Travel Cards Are Getting Too Good To Ignore

Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.

We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.

It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.

We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.