Chillin' out till it needs to be funded
Washington and New York based custodians for MF Global and Lehman Brothers are seemingly fighting an uphill battle for customer cash. Th elatest is the $700 million not yet included in the MF Global shortfall as it was ‘safe’ with the London based KPMG. PMG however refuses to handover the money to the US custodian for redistribution as it makes merry on the cash, not callable by current law.
The dispute in the case of Lehman Bros was similarily set up in 2008 and the London based custodians haven’t yielded the cash held in International accounts for Trade settlement and margin repatriated back to the US.
The same person being involved as the custodial charge for both bankruptcies, makes it a desi masala slumdog potboiler for the US customers to follow as Giddens , the custodian appointed takes the fight to court against KPMG in the MF Global case
Cash recovered in local US accounts of MF Global and JP Morgan among others is still not resoved into the redistributable basket as customerer have claimed it against securities sold and accounts withdrawn from MF Global, the said claim s to be re examined.