Business

MF Global customers press JP Morgan for funds

Customers of MF Global Holdings are pushing regulators to get tougher on J.P. Morgan Chase about money that went missing from accounts just before the firm’s collapse.

The move comes as a bankruptcy trustee representing brokerage customers of MF Global has said he is conducting an investigation of J.P. Morgan and had entered “substantive discussions regarding the resolution of claims” against the Wall Street firm.

In a letter due to be sent to regulators and lawmakers Monday, an MF Global customer group calls for J.P. Morgan to “return hundreds of millions of dollars in MF Global customer funds transferred” to J.P. Morgan in late October.

The group, called the Commodity Customer Coalition, urged US officials to “demand” that the New York bank “disgorge all MF Global customer property immediately.”

J.P. Morgan, which is cooperating with the ongoing investigation, has said it did nothing wrong and lost some of its own money in the Oct. 31 bankruptcy because it was a creditor of MF Global.

To read more, go to The Wall Street Journal.