MF Clients May Wait Years for Cash If Bankrupt Broker Sued
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MF Global Holdings Ltd. customers may have to wait years to get their money back if the futures broker is sued, according to Frederick Grede, the liquidation trustee overseeing the bankruptcy of Sentinel Management Group Inc.
“People should expect that the money on deposit with MF Global will be tied up for some time,” Grede said in a telephone interview today. A former chief executive officer of the Hong Kong Futures Exchange, he has sought to recover about $600 million of customer money from Sentinel, the futures broker that filed for bankruptcy in 2007. “If litigation is involved it well could be years” for MF Global customers, he said.