Just in time for the holidays, former customers of Peregrine Financial are getting a long awaited stocking stuffer. The PFG trustee announced today that they had filed a motion to return more money to former PFG Customers:
“…in an amount up to $41 million as follows: (i) with respect to 4d Customers, approximately seven percent (7%) ($27.5 million) of the 4d Customers’ account balances, and with respect to 30.7 Customers, approximately forty-five percent (45%) ($13.5 million) of the 30.7 Customers’ account balances. If the motion is approved, the total interim distributions made to 4d Customers and 30.7 Customers will be approximately thirty-seven percent (37%) and eighty-five percent (85%) of their Allowed Futures Claims, respectively.”
All around, this is welcoming news, as any money getting back to its rightful owners is a definite step in the right direction; but did Mr. Bodenstein have to shoot so low?
The 30.7 balances (the amount of money held by customers in foreign currencies to trade futures on foreign exchanges) have more than enough money to make them whole, and Mr. Bodenstein himself said ““We anticipate that they’ll get close to all their money,”, but this distribution only takes them to 85% whole. If there’s a surplus there, why hold back 15%. And those with 4d balances (the bulk of the PFG business), are only getting another 7%, when that could have easily been as high as 20% by our estimates. So what’s the hold up? In our best Rounders accent – “Pay that man his money.”
The motion hearing is scheduled for next Wednesday (December 18th) In Chicago, and there doesn’t seem to be any reason for the judge to deny it; meaning customers could be getting a check before the banks are closed for Christmas, and should be getting one by the end of the year.