A judge approved the appointment of a bankruptcy trustee for MF Global Holdings Ltd
MF Global and JPMorgan Chase & Co
In approving the request, U.S. Bankruptcy Judge Martin Glenn in New York also authorized JPMorgan to pledge $26 million of collateral, up from $8 million, to keep MF Global operating in bankruptcy.
A trustee is often appointed when it may serve the bankruptcy estate's best interest, or when company executives are suspected of wrongdoing.
Corzine, a former New Jersey governor and chief of Goldman Sachs & Co
Separately, Glenn approved the adoption of a parallel claims process for securities customers and commodities customers of MF Global's broker-dealer unit, whose liquidation is being overseen by a separate trustee, James Giddens.
James Kobak, a lawyer for Giddens, said at the hearing that the estimated $1.2 billion shortfall of commodity customer funds, first revealed on Monday and twice the prior estimate of regulators, could rise or fall.
(Reporting by Nick Brown in New York; Additional reporting by Jonathan Stempel in New York; editing by Carol Bishopric)