Liquidation Proceeding for MF Global by Securities Investor Protection Corp

Discussion in 'Wall St. News' started by Wallace, Nov 1, 2011.


    'SIPC Taking Action to Protect Customer Assets; Giddens Appointed by Court
    as Trustee'
    "WASHINGTON, D.C. – October 31, 2011 - The Securities Investor Protection
    Corporation (SIPC), which maintains a special reserve fund authorized by
    Congress to help investors at failed brokerage firms, announced today that it is
    initiating the liquidation of MF Global Inc., under the Securities Investor Protection Act (SIPA).
    SIPC today filed an application with the United States District Court for the
    Southern District of New York for a declaration that the customers of MF Global
    Inc. are in need of the protections available under the SIPA."

    "The Securities Investor Protection Corporation is the U.S. investor's first line of
    defense in the event a brokerage firm fails, owing customers cash and securities
    that are missing from customer accounts. SIPC either acts as trustee or works
    with an independent court-appointed trustee in a brokerage insolvency case to
    recover funds.
    The statute that created SIPC provides that customers of a failed brokerage firm
    receive all non-negotiable securities - such as stocks or bonds -- that are already
    registered in their names or in the process of being registered. At the same time,
    funds from the SIPC reserve are available to satisfy the remaining claims for
    customer cash and/or securities custodied with the broker for up to a maximum
    of $500,000 per customer. This figure includes a maximum of $250,000 on
    claims for cash. From the time Congress created it in 1970 through December
    2010, SIPC has advanced $ 1.6 billion in order to make possible the recovery of
    $ 109.3 billion in assets for an estimated 739,000 investors.

    on a side note, AMP Futures sent clients an email yesterday I should have kept
    and posted that stated - IF I remember correctly:
    1: they have no relationship with MF Global, 2: don't trade for themselves
    3: don't trade on behalf of clients, 4: act only as a broker