Clients hope for the return of $1.2bn MF Global assets

CLIENTS of the British arm of failed broker MF Global will this week move closer to getting back $1.2bn (£763m) of frozen assets.

KPMG will outline plans to return the funds at the High Court on Friday after some clients and creditors publicly declared their unhappiness with the amount of time the process has taken. MF Global collapsed on 31 October after a $6.3bn bet on the Eurozone triggered a massive loss of confidence in the broker.

The administrator is also set to confirm the 29 February deadline for claims to be submitted under the special administration regime, which is being used to try to quicken the return of client money.

Meanwhile Michael Roseman, the former group chief risk officer who is said to have raised warnings about aggressive trading bets at MF Global, will testify before Congress’ financial services subcommitee on Thursday.

The committee is exploring the role that ratings agencies and risk officers played in the collapse of the futures brokerage.

Michael Stockman, who succeeded Roseman as chief risk officer, will also testify, along with representatives from Standard and Poor’s and Moody’s, a congressional staffer said.