The trustee tasked with returning more than $1.6 billion in missing customer money after the demise of MF Global has suggested establishing an insurance fund for commodities customers to safeguard assets in the event of a future collapse, according to a statement he read at a Congressional hearing on Tuesday. “With such a fund in existence, three-quarters of MF Global’s commodities customers would not have been subject to any loss and could have been made whole within days of the bankruptcy filing,” James W. Giddens told members of the Senate Banking Committee. “A protective fund of this nature could be modestly funded and maintained at a minimal cost until such time as necessary to advance funds to customers, thereby allowing them to resume trading with little or no delay.” Read New York Times report here.
