Per the Wall Street Journal:
August 29, 2012
By AARON LUCCHETTI
The move by Mr. Freeh, a former director of the Federal Bureau of Investigation, comes one month after he submitted congressional testimony projecting that the various estates had enough money to pay back customers. Both steps indicate that Mr. Freeh, whose interests as parent-company trustee have sometimes diverged from lawyers trying to recover money for MF Global customers, is looking to find ways to unlock the logjam.
Mr. Freeh opposed that idea, but added in a 15-page filing that the trustees should try to get in a room and settle all their issues, rather than sue each other and piling up legal bills that ultimately take away money from customers and creditors.
"The most efficient and economical use of the resources of the various estates is a cooperative approach," said Mr. Freeh's court filing, submitted by law firm Morrison & Foerster in U.S. bankruptcy court in the Southern District of New York. The filing added that a "global resolution" of all claims rather than further litigation between the various parties was the preferred approach. "The time is ripe for full-scale negotiations," it said.
Mr. Giddens responded through a spokesman that he and Mr. Freeh "are cooperating to the greatest extent possible. Because of their different roles in the proceedings, [Mr. Giddens] and Mr. Freeh have obligations to different parties."
One of the biggest sums in dispute, about $700 million, is tied up in the U.K. Mr. Giddens says that money belongs to U.S. customers of MF Global. The administrator, KPMG LLP, insists it has the right to distribute the money under U.K. law. The dispute likely won't be decided by U.K. courts until next year at the earliest. KPMG couldn't be reached to comment.
In his filing, Mr. Freeh's lawyers argued that Mr. Giddens's effort to join plaintiff lawsuits against Mr. Corzine and others represented an attempt to "assign claims that belong to" MF Global's general estate to MF Global customers.