MF Global now estimates $1.6 Billion missing

MF Global commodity customers whose cash vanished when the firm collapsed last year are owed $1.6 billion – up significantly from previous estimates — the trustee tasked with recovering the money said on Friday.

The revised figure reflects growing concerns that the trustee cannot claw back $700 million in customer money trapped overseas. Until now, the trustee did not include the $700 million when projecting the shortfall, hoping to avoid a battle with MF Global’s British arm, where the money is held.

But now the trustee, James W. Giddens, has acknowledged that he is making little headway in recovering the cash from KPMG, the court-appointed administrator for MF Global’s British subsidiary. That money, Mr. Giddens said, was held for American clients who traded on foreign exchanges.

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This just keeps getting better. /s