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MF Global Holdings Ltd who has offices in Manhattan New York, has been ordered by a federal judge to return more than $1 billion in restitution to customers and to also pay an additional $100 million penalty. This comes as part of a civil settlement with U.S. derivatives regulators. The company had shady dealings in 2011 as reported by CNBC. The brokerage, MF Global Holdings Ltd, collapsed in October 2011 and lost more than $1 billion in their customers money. Some critics of the situation are essentially not surprised at the recent years’ growth in regulation in the financial industry when considering situations like this.
The court order was announced by the Commodity Futures Trading Commission in a Monday press release and it was given by U.S. District Judge Victor Marrero for the Southern District of New York. According to the New York Times, two years after the $1.6 billion vanished from their accounts, MF Global’s customers are now all but assured to collect every last penny. After such a long wait time, worried shareholders must feel relieved to see the announcement. A financial entity is entrusted with peoples’ life savings and their livelihoods. The restitution that will be seen will surely be welcomed.
The approval by the judge, Victor Marrero, signifies the end of the commission’s litigation. The CFTC’s civil case against defendants MF Global Holdings, former Chief Executive Jon Corzine and former Assistant Treasurer Edith O’Brien, are still currently ongoing.
Image Credit: MF Global
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