MF Global To Pay $1.2 Billion Restitution, $100 Million Fine

MF Global To Pay $1.2 Billion Restitution, $100 Million Fine

MF Global Holdings Ltd (OTCMKTS:MFGLQ) will have to pay $1.2 billion in restitution and $100 million in civil fines in addition to admitting guilt as part of a settlement with the Commodity Futures Trading Commission (CFTC) regarding its conduct when the company went bankrupt in 2011, FINalternatives reports. The deal doesn’t cover individuals working at MF Global, and the CFTC is still suing CEO Jon Corzine, alleging that he did not act in good faith. Corzine denies any wrongdoing.

MF Global went bankrupt in 2011

MF Global Holdings Ltd (OTCMKTS:MFGLQ) went bankrupt in 2011 when it went deep on European sovereign debt and lost. The problem is that before closing shop, it wired $1.6 billion in customer funds to cover the losses. Most people blame Corzine for the money transfer, and until recently no one expected the clients to be made whole. Getting so much money back is impressive, but it doesn’t absolve anyone of taking client money in the first place.

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