Mar 20, 2013 1:56 AM by Associated Press
NEW YORK (AP) - J.P. Morgan Chase has reached a $546 million settlement with MF Global Holdings to reimburse cash that was misplaced from customers' accounts when the trading firm collapsed in 2011.
In a story first reported Tuesday in the Wall Street Journal, J.P. Morgan will pay $100 million to reimburse customers while relinquishing claims it had on $417 million in MF Global funds that it had previously returned to customer trustee James W. Giddens. J.P. Morgan also is returning $29 million related to agreements including an MF Global credit facility, the newspaper says.
Both companies confirmed the settlement, which must be approved by Bankruptcy Court Judge Martin Glenn and District Court Judge Victor Marrero to become effective.
A House panel has said credit rating agencies and federal regulators contributed to MF Global's collapse. But it pinned most of the blame on risky strategies by ex-CEO Jon Corzine, the former New Jersey governor.