Banks, Mf Global | featured news

Former New Jersey Gov. Jon Corzine could face a lawsuit from the trustee trying to recover $1.6 billion in customer money from the collapse of the brokerage MF Global.

J.P. Morgan Chase has returned roughly $600 million that was ensnared at the bank when MF Global collapsed in October.

J.P. Morgan agreed to hand over $168 million to a bankruptcy trustee representing customers of MF Global. The trustee, James Giddens, said in a statement Friday that the money paid "represents the proceeds of excess collateral" that the New York bank "held" when MF Global tumbled into bankruptcy Oct. 31.

The Federal Bureau of Investigation plans to examine MF Global Holdings Ltd amid concerns about missing client funds at the futures brokerage, the Wall Street Journal said Tuesday, citing a person familiar with the matter.

The Wall Street firm run by former Goldman Sachs Chairman and New Jersey Gov. Jon Corzine filed for bankruptcy Monday morning, making it the first big American casualty of the European debt crisis.