MF Global Trustee Denies Funds Went To Pay D&O Insurance

Law360, New York (February 9, 2012, 3:29 PM EST) -- A lawyer for MF Global Holdings Ltd.'s trustee said Thursday that it was unlikely that money from the firm's customer accounts, which are missing an estimated $1.2 billion, could have been used for insurance payments to cover legal defense costs for MF Global's executives.

"It's hard to imagine that the source of the payments would have been anything other than appropriate sources," Lorenzo Marinuzzi, of Morrison & Foerster LLP, counsel for the Chapter 11 trustee, told a New York bankruptcy judge.

The complicated dispute involves objections by...
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