Today is August 30th. It has been a month and a half since PFGBest declared bankruptcy. After silence from the Trustee – FINALLY – news from his offices.
By now, most people have heard about the trustee’s motion yesterday for a distribution. There’s been a lot of confusion and a lot of questions about what different elements mean, and while we had been anticipating further clarification from the trustee’s office, that’s not looking likely, so we’ll explain what we know so far.
Here’s something you don’t hear around our offices too frequently (or possibly ever before)… Good Job NFA ! While the NFA’s handling of the PFG fiasco belongs in textbooks on how not to do public relations in times of crisis, it looks like someone over there finally woke up and is trying to do the right thing – returning PFG customer money that was used to pay PFG’s regulatory fines.
As many have already heard, there have been some new developments in the PFGBest bankruptcy proceedings. We’ll continue to follow the situation closely, but all in all, there’s really only one thing to say: it’s about time.
The PFG Best story is full of so many twists and turns, we’ve wondered in the past how long it will be before the Hollywood treatment comes out (and whether a share of those profits would go to help make former customers whole). But as each new detail of the sordid affair has come to light, we’re starting to wonder if this tale might already be too unbelievable – or cliché – for even the big screen.
One of the delays in former PFG customers getting more money back stems from having to wait for the Forex and Metals customers lawsuit to end. But what’s taking so long, and what is really at stake for futures customers?
The unwinding of the mess that Russ Wasendorf left behind has surely been a daunting task, but we haven’t exactly been impressed with its execution. There have been a number of missteps along the way… and now, we’ve just discovered how large the bill for all that “service” is going to be.
Another missive on MF Global that we can drop straight into the “things we already knew” file: a new report from trustee Louis Freeh alleges that Jon Corzine was largely responsible for the downfall of the company. Not exactly shocking material, and quite a bit of it is simply a re-hash of other reports on the subject, but it does contribute to the mountains of damning evidence against Corzine.
Louis Freeh is stepping down from his role assisting in the liquidation of MF Global, but this is more of a celebratory “going out on top” type exit than getting out of a bad situation – with a federal bankruptcy judge recently approving a final liquidation plan for Corzine’s collapsed firm. With former customers slated for a full payout, things are definitely looking up.
For those who had accounts at PFG – the overriding questions beyond what happened, what has changed, and all the politics and drama surrounding those items – is when am I going to get more of my money back and how much of my money will I be getting back? To tackle that, we talked with the PFG Bankruptcy trustee Ira Bodenstein: