MF Global parent fined in $1.2B restitution case

MF Global Holdings Ltd. has been fined $100 million by the Commodity Futures Trading Commission in a $1.21 billion restitution case over the 2011 collapse of the futures brokerage.

The Commodity Futures Trading Commission also said Wednesday that a New York court has said that MF Global Holdings and its subsidiary MF Global Inc. are jointly responsible for paying the $1.21 billion restitution. That payment was part of in an order against the subsidiary handed out by a federal court in New York in November 2013.

MF Global Holdings admitted to unlawful use of customer funds as charged by the CFTC.

The CFTC said Wednesday that litigation continues against Edith O'Brien, who had been MF Global's assistant treasurer, and MF Global's former leader, Jon Corzine. Corzine is a former chief of Goldman Sachs, a former Democratic U.S. senator and the former governor of New Jersey.

MF Global Holdings, the New York-based parent company, imploded in October 2011 after making big bets on bonds issued by European countries that later turned sour. When it collapsed, more than $1 billion in customer money was discovered to be missing. It was later found that the funds were used to pay for the company's own operations. With $41 billion in assets, it was the eighth-largest corporate bankruptcy in U.S. history.