Bankrupt MF Global execs may get bonuses
Several senior executives at bankrupt Wall Street firm MF Global Holdings Ltd. could be set to receive six-figure bonuses even after the securities firm has collapsed under the weight of various unexplained financial transactions.
According to the Wall Street Journal, the trustee in charge of the case is going to ask a New York judge for permission to pay the company's chief operating officer, finance chief and head lawyer bonuses in the six-figure range, each.
The three executives and up to as many 20 others could be set to receive retention bonus payouts for staying on after the firm's October collapse to help unwind complicated financial transactions so the company's creditors can be repaid.
Citing unnamed sources familiar with the situation, the paper reported that COO Bradley I. Abelow, CFO Henri J. Steenkamp and general counsel Laurie R. Ferber are all still collecting six-figure paycheques as the company unwinds its operations. At its peak, MF Global had 2,870 employees on the payroll. About 300 remain, the paper said.
One of the world's largest derivatives brokers, MF Global collapsed in October 2011 after a $1.6 billion shortfall in customer accounts was discovered. A subsequent investigation found unexplained transfers out of customer accounts, and various other problematic financial transactions.
MF Global founder Jon Corzine, a former CEO of Goldman Sachs and governor of the state of New Jersey until 2010, resigned from the firm in November.
None of the firm's current or past employees have been charged with any official legal wrongdoing.