Judges approve settlement of JPMorgan Chase & Co. (NYSE:JPM) with MF Global


Dallas, Texas 07/05/2013 (Financialstrend) – JPMorgan Chase & Co. (NYSE:JPM) closed in the previous trading session at $52.77 after going down by 0.06% (or -$0.03). The intra-day range of the stock is $52.21-$52.81. The market capitalization of the company is $199.50 billion.

The customers of the failed broker-dealer unit of MF Global, along with the trustee overseeing the broker’s liquidation, won the approval of the court on Wednesday, pertaining to a $546 million settlement with JPMorgan Chase & Corporation.

James Giddens, the trustee winding down the broker-dealer unit of MF Global, Inc., and the former customers of the broker levied claims, whereas the settlement that was announced in March resolved these claims. The above individuals are pursuing a federal class action over the collapse of MF Global in 2011.

Jon Corzine, former New Jersey Governor and head of MF Global, the commodities brokerage, filed for bankruptcy over concerns from investors that it was exposed to sovereign debt of $6.3 billion.

A week after Corzine was sued by the Commodity Futures Trading Commission over the collapse, the approval of the JPMorgan settlement took place, announcing a $100 million settlement with the broker dealer of MF Global. At a rare joint hearing in Manhattan, United States District Judge, Victor Marrero, who presides over the class action and United States Bankruptcy Judge, Martin Glenn, who is overseeing the liquidation, approved the proposal of JPMorgan.

Mr. Marrero said that the proposal was reasonable, fair and in the best interests of the class.

James Giddens said that this settlement will help him return 100 percent of the money of the customers that was blocked when MF Global went bankrupt. Ninety percent of the funds are already received by most of the customers.

JPMorgan Chase & Corporation will pay $100 million to the former customers, under the settlement. It will also return $29 million in brokerage funds and release claims on $417 million that were earlier returned to Giddens.