J.P. Morgan Chase & Co. (JPM: Quote) has reached a settlement with MF Global Holdings Ltd. (MF: Quote,MFGLQ.PK) customers that is likely to see them receiving an estimated $546 million.
The settlement agreement was reached between J.P. Morgan, the trustee for the failed firm’s brokerage unit and lawyers of the customer plaintiffs.
The brokerage and parent company MF Global Holdings Ltd. went into bankruptcies on October 31, 2011. While the parent is under control of a Chapter 11 trustee, James W Giddens is the brokerage trustee.
J.P. Morgan reached a $100 million settlement with the trustee liquidating MF Global and the trustee, Giddens, will additionally seek to allocate $200 million more to be paid to customers. JPMorgan will also pay over $29 million of the brokerage’s funds held by the lender.
JPMorgan had earlier returned over $417 million to the brokerage’s estate, which will now be available for customers and creditors as part of the agreement.
JPM closed down 0.6 percent at $49.20.
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by RTT Staff Writer
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