MF Global Fined $100 Million

Nov 18 2013 | 12:55pm ET

MF Global Holdings will pay $100 million in fines as part of its settlement of Commodity Futures Trading Commission allegations over its 2011 collapse.

U.S. District Judge Victor Marrero in New York ordered the firm to pay $1.2 billion under the deal. Most of that is in the form of restitution to clients whose funds were misappropriated by the bankrupt futures broker.

The $100 million fine will only be paid after MF Global fully repays its customers and some creditors, the CFTC said. As part of the settlement, MF Global has admitted wrongdoing.

The deal does not cover former MF Global CEO Jon Corzine or any of the other former MF Global executives sued by the CFTC. Corzine and the others earlier this month lost a bid to have those claims dismissed.

Also earlier this month, the bankruptcy trustee overseeing MF Global said that its customers would be fully repaid by the end of the year. Some $1.6 billion disappeared from customer accounts as MF Global careened towards bankruptcy in October 2011.


In Depth

Steinbrugge: Top 10 Hedge Fund Industry Trends for 2017

Jan 3 2017 | 9:03pm ET

Each year, Agecroft Partners' Don Steinbrugge predicts the top hedge fund industry...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The U.S. Commodity Futures Trading Commission (CFTC) ordered The Goldman Sachs Group Inc., and Goldman, Sachs & Co. to pay a $120 million penalty for attempted manipulation and false reporting of ISDAFIX Benchmark Rates, a global benchmark for interest rate products.