MF Global Holdings, Ltd. (fka MFGLQ)

[mrfence]

MF Global Holdings to pay $100 million fine in CFTC settlement


By Douwe Miedema and Karey Van Hall

WASHINGTON Wed Dec 24, 2014 4:34pm EST


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(Reuters) - The U.S. Commodity Futures Trading Commission said on Wednesday it had fined MF Global Holdings Ltd for wrongdoing during the collapse of the futures brokerage, but will continue its lawsuit against the firm's former chief, Jon Corzine.

A federal judge in Manhattan approved a settlement in which the company will pay a $100 million fine and be jointly responsible for returning $1.212 billion in client funds that another unit had been ordered to restitute last year.

The parties agreed on the settlement earlier this month, though terms were not disclosed at the time.

The CFTC said its litigation would continue against former MF Global Chief Executive Corzine and former Assistant Treasurer Edith O'Brien. If they do not settle, the former officials may have to defend themselves in court.

A lawyer for MF Global Holdings did not immediately return a request for comment.

MF Global went under in 2011 at the height of the European debt crisis when markets became spooked by the company's $6.3 billion bet on European government bonds.

U.S. authorities have accused the company of using customer funds to cover liquidity shortfalls.

The CFTC previously settled with the company's brokerage unit, MF Global Inc, which agreed to return $1.212 billion to harmed customers and pay a $100 million penalty.


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http://www.reuters.com/article/2014/12/24/us-mf-global-hldg-settlement-idUSKBN0K213G20141224