JPMorgan Chase agrees to €423m MF Global settlement
JPMORGAN Chase has reached a $546m (€423m) settlement with the trustee liquidating the failed broker-dealer unit of MF Global Holdings, a court filing showed, an amount that will help repay the brokerage's customers.
As part of a settlement reached with James Giddens, the trustee who is tasked with liquidating MF Global, JPMorgan will pay $100m that will be made available for distribution to former MF Global customers.
JPMorgan will also return more than $29m of the brokerage's funds held by the bank, while releasing claims on $417m that was previously returned to Giddens.
"The settlement agreement resolves claims by the trustee and customer representatives against JPMorgan that would otherwise result in years of costly litigation between the parties with an uncertain outcome," Giddens said.
JPMorgan was the lead on a $1.2bn loan to MF Global, and was also one of its primary clearing banks before the broker-dealer went bankrupt.
The bank had previously retained claims on some of the collateral posted by MF Global that led to the legal tussle.