Jon Corzine, former New Jersey governor and Goldman Sachs (GS.N) co-chairman, will pay a $5 million civil fine to settle a U.S. regulator's lawsuit over the 2011 collapse of his commodity brokerage, MF Global Holdings Ltd.
MF Global Inc. Trustee James Giddens declared the liquidation of MFGI "essential complete" after gaining approval of a final 95% distribution to allowed unsecured creditors on top of the 100% distribution ($6.9 billion) for customer claims.
The secured claims consists of mainly employee wage priority claims and CME Group claims; the unsecured general creditor claims include claims filed by introducing brokers, trade vendors, employees, and others according to the spokesman.
PwC, which provided auditing and accounting experts, failed to advise the firm to account properly for its European sovereign debt holdings, leading it to invest too much in them, MF Global said in a complaint.
The MF Global debacle was really a slow motion car crash. There were numerous red flags going back a year and the bottom line is that according to the initial bankruptcy filing, there was capital within MF Global Holdings to cover the shortfall in customer segregated funds but the appropriate regulatory authorities did not demand those assets