|
By Mark Melin, Opalesque’s Chicago-based editor of OFI and OFS.
While MF Global bankruptcy court trustee William Freeh has been arguing against MF Global segregated account holders receiving priority treatment in the liquidation proceedings, interesting voices are emerging to set the record straight.
On January 18, the Commodity Futures Trading Commission (CFTC) filed a legal brief essentially supporting the superiority of MF Global segregated account holders over creditors, citing specific bankruptcy code case law that afforded MF Global segregated account holders superiority over creditors.
In an statement to Opalesque on Friday, former CFTC Chairman Phillip McBride Johnson was clear: "The commodity bankruptcy process sets all customer funds apart from the debtor's assets and returns them to customers on a pro rata basis ahead of all creditors' claims, secured and unsecured."
While legal opinions and interpretations vary on the topic, particularly with relation to the SIPA liquidation process, one of the architects of the commodity brokerage bankruptcy liquidation process, Andrea Corcoran, provides critical perspective on the intention behind the law.
Ms. Corcoran is the widely respected 32 year legal veteran of the CFTC, now president of Align International, a compliance consulting fir...................... To view our full article Click here
|
RSS
