MF Global ordered to pay $1.2bn in restitution


The New York Federal Court ordered MF Global to pay $1.21 billion in restitution fees, in addition to a $100 penalty, for its unlawful use of customer funds, the Commodity Futures Trading Commission said Wednesday.

Litigation continues against the remaining defendants Jon Corzine, the former New Jersey governor, and MF Global's former Assistant Treasurer Edith O'Brien, the CFTC said.

MF Global collapsed in 2011 at the height of the European debt crisis when markets became spooked by the firm's $6.3 billion bet on European government bonds. U.S. authorities have accused the firm of using customer money to cover liquidity shortfalls.

Reuters contributed to this report.

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