A bankruptcy judge said that he would allow Jon S. Corzine and other former MF Global Holdings Ltd. executives and employees to tap the rest of their insurance money to pay for defense costs, but he is "concerned" with how quickly the money is being spent — though it isn't within his power to stop it, the Wall Street Journal reported on Saturday. In a ruling filed on Thursday, Bankruptcy Judge Martin Glenn lifted bankruptcy law's automatic stay to allow more than a dozen defendants to tap most of the $200 million remaining on the failed commodities brokerage's so-called "directors and officers" insurance policies. Those defendants include onetime Chief Executive Corzine, former operating chief Bradley Abelow and other executives and higher level employees. The former company officials are defending themselves against a number of civil actions and regulatory proceedings related to the bankruptcy of the broker-dealer in the fall of 2011. The judge said that $13.1 million of the money will be reserved for a potential claim MF Global could make against the policies, but the rest would be available for the defense costs. Apart from that, though, he said that because MF Global entities don't have claims that could be covered by the insurance money, he can't stop the former employees from accessing the money.
