Corzine, Former Group Executives Adhere to MF Global Settlement Worth $132m
- The dust from the 2011 bankruptcy and collapse of MF Global may finally be starting to settle.
The MF Global saga may finally be reaching a finality after the bankrupted commodities firm reached a $132 million accord to help end the majority of remaining litigation over the brokerage's 2011 upheaval and eventual collapse, according to a Reuters report.
One of the key figures in the case has been Jon Corzine, one of nine accused of making improper transfers that totaled more than $891 million from client funds to cover the group’s losses. Corzine was the former governor of New Jersey, who was also chief executive of the brokerage.
Corzine had sought to turn MF Global from a brokerage into a mid-tier investment bank. As such, the company took on more principal risk, including a European sovereign portfolio, which ultimately left MF Global insolvent.
MF Global originally filed for Bankruptcy Bankruptcy Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Read this Term back in October 2011 amidst investors angst and worry over its repeated credit rating downgrades and margin calls. Corzine's unsuccessful $6.3 billion wager on European sovereign debt was largely seen as the last straw.
Per the latest regulatory action, lawyers for the trustee Nader Tavakoli and MF Global's bankruptcy plan administrator this week asked a US bankruptcy judge to approve the payout, reiterating its closure whilst maximizing recoveries to the estates' creditors.
Dominos Fall
Consequently, a substantial majority of the payout will be made insurers on behalf of Corzine and a panel of defendants, including some of MF Global's top brass. This includes former Chief Operating Officer Bradley Abelow and former Chief Financial Officer Henri Steenkamp. Despite the verdict, neither individual admitted to mismanaging MF Global, nor did they ultimately admit liability in agreeing to settle.
Almost one year ago, a preliminary $64.5 million all-cash settlement was approved by a US Federal Judge. The aforementioned July 2015 Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term was part of a string of lawsuits related to MF Global’s downfall. In April 2015, PricewaterhouseCoopers (PwC) settled a lawsuit with MF Global investors, who accused the auditor of fraudulent deceit. Investors claimed that PwC, which agreed to pay $65 million in cash to settle the lawsuit, failed to disclose MF Global’s fatal issues despite being aware of them.
The MF Global saga may finally be reaching a finality after the bankrupted commodities firm reached a $132 million accord to help end the majority of remaining litigation over the brokerage's 2011 upheaval and eventual collapse, according to a Reuters report.
One of the key figures in the case has been Jon Corzine, one of nine accused of making improper transfers that totaled more than $891 million from client funds to cover the group’s losses. Corzine was the former governor of New Jersey, who was also chief executive of the brokerage.
Corzine had sought to turn MF Global from a brokerage into a mid-tier investment bank. As such, the company took on more principal risk, including a European sovereign portfolio, which ultimately left MF Global insolvent.
MF Global originally filed for Bankruptcy Bankruptcy Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Read this Term back in October 2011 amidst investors angst and worry over its repeated credit rating downgrades and margin calls. Corzine's unsuccessful $6.3 billion wager on European sovereign debt was largely seen as the last straw.
Per the latest regulatory action, lawyers for the trustee Nader Tavakoli and MF Global's bankruptcy plan administrator this week asked a US bankruptcy judge to approve the payout, reiterating its closure whilst maximizing recoveries to the estates' creditors.
Dominos Fall
Consequently, a substantial majority of the payout will be made insurers on behalf of Corzine and a panel of defendants, including some of MF Global's top brass. This includes former Chief Operating Officer Bradley Abelow and former Chief Financial Officer Henri Steenkamp. Despite the verdict, neither individual admitted to mismanaging MF Global, nor did they ultimately admit liability in agreeing to settle.
Almost one year ago, a preliminary $64.5 million all-cash settlement was approved by a US Federal Judge. The aforementioned July 2015 Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term was part of a string of lawsuits related to MF Global’s downfall. In April 2015, PricewaterhouseCoopers (PwC) settled a lawsuit with MF Global investors, who accused the auditor of fraudulent deceit. Investors claimed that PwC, which agreed to pay $65 million in cash to settle the lawsuit, failed to disclose MF Global’s fatal issues despite being aware of them.