MF Global’s creditors (and clients) in Europe, and everywhere else, have many reasons to be furious. Now those in Europe have one more to add to their list of grievances: a complete and totally public disclosure, courtesy of KPMG, of not only how much they are owed, but their mailing, and in many cases, home address. In other words, not only will these individuals not receive their full claims in the insolvent entity whose primary specialty as it turned out was rehypothecating what little assets it did have, but now have to worry about the taxman coming after them…. As well as promptly changing their home address. One party, however, that will hardly mind, is JPMorgan which is supposedly owed just over €100 million. Luckily for them, they already quote unquote collected the (client) money.
The full list is below (source)
And the FT’s take:
Private clients of MF Global reacted angrily on Wednesday to what several said was a severe breach of privacy, after KPMG, administrator to the UK arm of the failed futures broker, published their identities, home addresses and the sums owed to them.
The list, which includes corporate and institutional clients from the UK’s Financial Services Authority to the London Stock Exchange as well as numerous banks and trading entities, includes hundreds of private individuals who are owed sums as small as £3,200 and as large as £500,000 apiece. Other creditors include JPMorgan, which is owed £100m.
The revelation comes as the laws protecting UK customers of failed investment firms are coming under scrutiny. While MF Global’s US clients have recouped nearly three-quarters of their cash, their UK counterparts have received only a quarter, at best. Customers’ legal status has been further complicated by a UK court ruling on Lehman Brothers that treats customers suffering losses from a failed broker not individually but as a class.
Under UK insolvency law, directors must publish a statement of affairs but can apply to a court for parts of the statement to be redacted if it prejudices the conduct of the administration, as happened with Lehman.
“After legal advice, we considered that there were no substantive grounds to apply for a redaction and the court would be likely to reject any such application,” said Richard Heis, joint special administrator at KPMG.
James Nicholls, an insolvency lawyer acting for a group of creditors to the UK administration, said: “In a case like this of such sensitivity they [KPMG] could and should, in my opinion, have asked the court for permission to redact the personal identities. It is incredible that we now know the names and addresses of rich and vulnerable individuals around the whole world.”
Something tells us the 99 percenters are quite delighted with this release and are busy taking notes and plotting waypoints for when the time finally comes.