Federal judge orders MF Global to pay $1 billion to customers

WASHINGTON Mon Nov 18, 2013 12:25pm EST

The sign marking the MF Global Holdings Ltd. offices at 52nd Street in midtown Manhattan is seen in New York November 2, 2011. REUTERS/Shannon Stapleton

The sign marking the MF Global Holdings Ltd. offices at 52nd Street in midtown Manhattan is seen in New York November 2, 2011.

Credit: Reuters/Shannon Stapleton

WASHINGTON (Reuters) - A federal judge in New York has ordered MF Global Inc to return more than $1 billion to harmed customers and pay an additional $100 million penalty as part of a civil settlement with U.S. derivatives regulators.

The November 8 court order by U.S. District Judge Victor Marrero for the Southern District of New York was announced by the Commodity Futures Trading Commission on Monday in a press release.

The approval by the judge marks the end of the CFTC's litigation initiated in June against MF Global Inc over the brokerage's October 2011 collapse and loss of more than $1 billion in customer money.

The CFTC's civil case against defendants MF Global Holdings Ltd, former Chief Executive Officer Jon Corzine and former Assistant Treasurer Edith O'Brien, however, is still ongoing.

(Reporting by Sarah N. Lynch; Editing by Lisa Von Ahn)

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Comments (3)
Lloyd_L wrote:
This article doesn’t address the issue that MF Global is in bankruptcy. How much do they have in assets and what are the chances for recovering any, all or part of the $1.1 Billion judgement to the customers and CFTC?

Nov 18, 2013 1:13pm EST  --  Report as abuse
tmc wrote:
Why the hell isn’t the man (Corzine) going to jail?

Nov 18, 2013 2:31pm EST  --  Report as abuse
Thank you, Lloyd_L. I thought the same thing. MF went bankrupt a while back so it is a mystery how that money will be paid back or by whom. There needs to be more information in this story.

Nov 18, 2013 2:53pm EST  --  Report as abuse
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