JP Morgan has decided they are more entitled to the $80 million they lent to MF Global than thousands of individual investors are to $700 Million of THEIR OWN MONEY.
JPMorgan Chase & Co. (JPM) seeks a lien on all of MF Global Holdings Ltd.’s assets and may have a lien on its operating account balance of $26.6 million, the bank said.
MF Global, which filed for bankruptcy with assets of $41 billion, has five operating accounts, all with JPMorgan. The bank may have a lien on the entire balance because of so-called setoff rights related to a credit line to MF Global where it acts and agent and lender, the New York-based bank said in a filing.
JPMorgan holds less than $80 million of the MF Global’s debt, said Joseph Evangelisti, a spokesman for the New York- based bank and acts as an agent to lenders for a $1.2 billion credit line to MF Global Holdings and a $300 million credit line to its broker-dealer unit.