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Statement from the Office of the Trustee for the Liquidation of MF Global Inc.

Trustee Distributing Virtually All Property Under His Control; Shortfall May Be Larger

Than MF Global Management Had Reported Prior to Bankruptcy

November 21, 2011 New York, New York James W. Giddens, Trustee for the liquidation of

MF Global Inc., today reported that his current plan to distribute 60% of what should have been

segregated (Trustee makes accusation that the missing funds are from the segregated portion.

Yet to this date there has been no verification of this claim anywhere.) in US depositories for all

former customers with US futures positions will total nearly all of the assets currently under his

control. The Trustee to date has brought approximately $3.7 billion under his control, all of which comes from the former US depositories of the broker-dealer. (Here Trustee Giddens

informs the world that he has been unable to bring any MF Global assets under his control after

all these weeks. Just those of customers. Even here, an exact accounting is not given. Yet every

single client can make an accounting of their own statement for rapid reconcilation with the

Trustee. After all client statemens were reconciled daily to the penny. The court must examine

how is it possible that only customer assets are under control when MF Global has identified

assets far exceeding the claimed shortfalls.) Having already distributed $1.5 billion in collateral,

and currently distributing $520 million in cash, leaves approximately $1.6 billion on hand. The

previously announced next step, restoring 60% of what is in segregated customer accounts for

US futures positions, would require approximately $1.3 to $1.6 billion to implement; that is,

virtually all of the assets currently under the Trustees control. (Whining to the public that

returning funds to clients should not be done because it would deplete the Trustee assets under

his control? Customer assets do not belong in the bankruptcy estate in the fist place. It is the

job of the Trustee to liquidate, gather assets, take his cut and pay off debtors. Here we have a

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Trustee spining the claime of apprently missing funds, and his inability to get MF Global

assets under his control to then steal from citizens and businesses around the country and secure

into the MF Global estate. .) This next step is subject to Bankruptcy Court approval, (Uh oh!

This is the big out. Yes, the court must approve every step, but the Trustee is making filing

motions fast and furiouly to reduce both the standing and voice of client and customer

representation. Why? Because he risks being ordered by the court to return client property.

And remember, the estate pays for the work on these motions that have little or nothing to do

with the work of a liquidator and seemingly more to do with getting rid of pesky customers and

clients who demand return of their titled property. See motion yesterday . ) and will be done inclose cooperation with the CFTC, SIPC, and the CME. (The CFTC already abdicated their role

by allowing the responsibility of customer funds to go to SIPC. The Chairman of the CFTC isn t

answering questions and ignoring demands for answers from the Senate . CFTC staff is

dysfunctional and running for cover. The SIPC has nothing to do with commodity accounts and

no knowledge of the industry. And the CME has already demonstrated that they just follow

court orders , no matter how nonsensical or ludicrous.) The Trustee expects this transfer to

occur in early December, once the current transfer is complete and books and records are

reconciled to allow it to happen.

Efforts to collect other funds from US depositories continue around the clock, and it is expected

that the US funds available to the Trustee will increase in the coming weeks. (What is theexact

sum of funds at US depositories? This figure must be known. ) At present, however, the Trustee

does not have access to other funds beyond the $1.6 billion on hand, and he is very close to

exhausting the funds under his control. (What does that have to do with return of customer

assets?) Further complicating matters, assets located in foreign depositories for customers that

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traded in foreign futures are now under the control of foreign bankruptcy trustees, and while the

Trustee will pursue them vigorously, it has been his experience that recovery of these foreign

assets may take more time. (This is loaded. And we welcome informed comment on that point

from readers: But for now:

1.) Customer assets held in margin with exchanges such as the Eurex, are immediately

identifiable and returnable to rightful owners. That is how the futures industry is organized.

2.) We understand that Canadian exchanges, for example, are well into returning funds to

rightful owners in Canada.

3.) Can Trustee Giddens tell us exactly what he has done to date

in cooperation with all

exchanges -- to secure US customer assets held in Canada? Or Germany? Can Trustee

Giddens explain how it happened that U.S. regulators, inadvertently transferred many of

the Canadian accounts to another U.S. brokerage .)

The Trustees counsel has also stated in open court that the Trustee has only relatively nominal

proprietary that is non-customer assets in his immediate control. (The amount of assets the

Trustee controls has nothing to do with returning client funds.) from the apparent shortfall in what

former MF Global Management should have segregated. At present, the Trustee believes that

even if he recovers everything that is at US depositories, the apparent shortfall in what MF

Global management should have segregated at US depositories may be as much as $1.2 billion

or more. The Trustee wants to stress that these are preliminary numbers that may well change,

and the Trustee will update in due course. (Here you have it. The Trustee NEVER states that

1.2 billion is missing. He does not even back up his claims of an apparent shortfall Yet the

hysteric media s states this as a fact. This spin worked.) The Trustees investigative team,

consisting of counsel experienced in broker-dealer liquidations and expert consultants and

http://business.financialpost.com/2011/11/13/court-expected-to-approve-mf-global-canada-account-transfer-to-rbc/http://business.financialpost.com/2011/11/13/court-expected-to-approve-mf-global-canada-account-transfer-to-rbc/

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forensic accountants from both Deloitte and Ernst & Young, continues around the clock in close

coordination with the Department of Justice, the CFTC, the SEC, SIPC, the CME, and others.

(expert team is working around the clock and all they can identify and get under control are

titled customer assets? Will the Honorable Judge Glenn demand an updated accounting from

the Trustee? Will Judge Glenn step in and rule that all statements to the public must be

responsible, based on qualified information and not professionaly manipulative spin?)

The information in this statement does not apply to any other MF Global entity, including

separate insolvency proceedings involving the parent company, MF Global Holdings Ltd.

Media Contact for the MF Global Inc. Trustee:Kent Jarrell: 202-230-1833