The Securities Investor Protection Corp., an industry fund that covers losses from brokerage firm failures, bears no responsibility to compensate victims of R. Allen Stanford’s $7 billion fraud, a federal judge ruled.
MF Global Holdings Ltd., run by former New Jersey governor and Goldman Sachs Group Inc. co- chairman Jon Corzine, has accounted for all its customer funds, said Kenneth Ziman, a lawyer for MF Global, citing the company’s management.
Yellow-page publisher R.H. Donnelley Corp. filed a Chapter 11 petition late yesterday in Delaware along with agreement on a reorganization plan reducing debt by $6.4 billion and giving all of the new stock and $300 million in unsecured notes to holders of 11 issues of unsecured notes.
MF Global Inc.’s commodity customer funds have a shortfall of $633 million, or about 11.6 percent, out of a segregated fund requirement of about $5.4 billion, the Commodity Futures Trading Commission said.
Lenders could lose $168 billion if banks sell loans into the Public-Private Investment Partnership at market prices instead of their balance-sheet valuation, Jamie McGee and Margaret Chadbourn of Bloomberg News report, citing estimates in regulatory filings.