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MF Global 'Direct Loss' Ruling Weakens Fidelity Insurers

By Pete Brush (July 17, 2013, 7:26 PM EDT) -- MF Global Inc. cleared a huge hurdle Tuesday in its bid to have an American International Group Inc. unit cover a $141 million trading implosion, erasing doubt in New York appeals court over whether it suffered the direct loss necessary for a fidelity bond guarding against employee theft to kick in and, experts said, blurring the legal line between first- and third-party coverage. ...

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