Conoco Credit Letters Same As Cash, MF Global Trustee Says

Law360, New York (December 19, 2012, 4:52 PM ET) -- ConocoPhillips Co. should not be able to get a windfall because it posted letters of credit, not cash, as its trading collateral at now-bankrupt brokerage MF Global Inc., MF Global's trustee argued Wednesday, saying LOCs are effectively cash under the law.

Rules from the U.S. Commodity Futures Trading Commission say that LOCs posted by a customer should be treated as a cash equivalent in a bankruptcy, a lawyer for MF Global trustee James W. Giddens said at oral arguments before U.S. District Judge Katherine B. Forrest...
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