Trustee says: MF Global Holdings trustee Louis Freeh told the Senate Agriculture Committee that customers of the failed commodities broker will eventually be made whole, The Wall Street Journal reports. Beyond the $1.6 billion owed customers, Mr. Freeh’s analysis is said to show that about $500 million may be left for MF Global’s creditors.
‘No’ on writedowns: Federal Housing Finance Agency head Edward DeMarco rejected an Obama administration plan for principal reductions on certain loans owned by Fannie Mae and Freddie Mac, the mortgage giants regulated by the FHFA.
New deal: Steven Koch, co-chairman of mergers and acquisitions at Credit Suisse, is hanging up his investment bankers’ hat to become a deputy mayor of Chicago in Rahm Emanuel’s administration. Mr. Koch joined First Boston in 1985 from Lehman Brothers Kuhn Loeb and stayed with the firm as it was integrated into Credit Suisse.
Earnings down: Societe Generale said profit fell 42 percent in the second quarter, after writing down the value of U.S. and Russian subsidiaries.
Icahn steps aside: Metro-Goldwyn-Mayer plans to buy out activist investor Carl Icahn’s share in the company for $590 million, clearing the way for an initial public offering, The Wall Street Journal reports. Mr. Icahn’s representative on MGM’s board of directors will leave the company as part of the deal.
The New York Times reported Pimco co-chief investment officer Bill Gross’ 2011 pay at $200 million in a profile of Pimco’s Mohamed El-Erian last month. Felix Salmon thought that number sounded high, and posed some questions he hopes the next story on Mr. El-Erian will answer. @Dutch_Book complained that the Reuters blogger was asking clown questions in a post at Stone Street Advisors. Mr. Salmon responded. Twitter was excited.
‘Thanks, but no thanks’: It’s hard to give Madoff money away, The New York Post reports, as the family foundations of imprisoned fraudster Bernard Madoff’s sons Andrew and Mark had donations rejected last year.
Buried in paperwork: Hedge fund manager David E. Shaw and wife Beth Kobliner are building a $75 million home on Hastings-on-Hudson. It took the couple several years, and $428,000 in permitting costs, to gain approval for the new construction, according to The Post.
Settled: Goldman Sachs will pay $26.6 million to settle a class-action lawsuit over a $698 million mortgage-backed security deal.
