JP Morgan Wins Biggest Payout Of All Creditors In MF Global Fiasco
MF Global and creditors have agreed to terms over a dispute with JP Morgan over the value of intercompany claims within the bankrupt brokerage’s estate. The settlement’s effect will bolster JP Morgan’s payout. MF Global’s parent entity will increase the bank’s projected recoveries, although it is unclear how much that will serve. Court filings containing more detail are expected to be entered “shortly” in US Bankruptcy Court in Manhattan.
Whereas most of MF Global’s unsecured creditors are to receive between 13.4 cents and 39 cents on the dollar, JP Morgan is set to receive 73 cents on the dollar, but this number will even increase due to Tuesday’s settlement.
JP Morgan received much fire during the collapse of MF Global, and much conjecture regarding the nature of the bankruptcy and their COMEX position ensued. Some analysts noted that JP Morgan made a large adjustment of physical silver into its registered values over night. In the immediate wake of the MF Global collapse, JP Morgan’s registered inventories tripled from 557,265 ounces to 1,660,545 ounces on Tuesday. The similarity between the 1.1 million ounces adjustment into registered vaults at JPM and the 1.4 million ounces of registered silver tied to MF Global raised some eyebrows.
Jim Willie echoed this statement at the time:
“Here is the smoking gun. Days after the MF Global bankruptcy was filed, a vast array of deliveries in silver were expunged. The silver vault inventory tells the story of the crime. JPMorgan simply converted what should have been MF Global client silver into JPM licensed vaults. Review the timeline. MF Global declared bankruptcy on October 31st. About a week later the CME began reporting that 1.4 million ounces of Registered silver was unaccounted for and unavailable for delivery, including 627,182 ounces from non-cartel banks. About 7 to 10 days afterwards, JPMorgan suddenly reported a deposit of 613,738 ounces into Eligible vaults. Exactly seven days later, JPMorgan adjusted this silver into Registered vaults. JPMorgan had not seen one significant silver deposit in months prior to this bountiful day. Great work on the part of the Silver Doctors to decipher the story. The charade continues before the USCongress. They are told of claims that investigators are searching avidly for the missing funds. They know where the funds are, in JPMorgan London accounts.”