A U.S. judge has appointed a trustee to oversee the liquidation of the U.S. brokerage unit of Jon Corzine's MF Global Holdings Ltd, which filed for bankruptcy protection on Monday, a federal agency said.
James Giddens will oversee the liquidation of MF Global Inc, according to the Securities Investor Protection Corp, which helps recover funds for customers of failed brokerages.
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Giddens has for the last three years also been trustee for the U.S. broker-dealer of Lehman Brothers Holdings Inc , the largest U.S. company to fail. His law firm, Hughes Hubbard & Reed, will be counsel to the trustee.
The SIPC is a federally chartered agency that supervises brokerage liquidations. Federal law limits SIPC protection to $500,000 per valid claim.
MF Global filed for Chapter 11 protection from creditors after making bad bets on European sovereign debt. The bankruptcy is the seventh-largest in U.S. history. Corzine once ran Goldman Sachs and is a former New Jersey senator and governor.
The case is Securities Investor Protection Corp v. MF Global Inc, U.S. District Court, Southern District of New York, No. 11-07750. (Reporting by Jonathan Stempel in New York; Editing by Gary Hill)