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- New Cyberattack Goes Global, Hits WPP, Rosneft, Maersk
- Deutsche Bank Said to Lose as Much as $60Mn Over Derivative Trade
- Dimon Says JPMorgan Headcount to Keep Rising Despite Automation
- RBS to Cut 443 Jobs In UK, Move Many of Them to India
- Deutsche Bank Bullish on London Despite Brexit
- Supreme Court Nears Finish With Big Cases, Retirement Rumors
- The Richest Person in Every State
- LPL Tabs Scott Seese, Former eBay Exec, as Chief Information Officer
- Fired Biglaw Associate Arrested for Trying to Extort Partners
- Canada's CIBC Completes $5Bn PrivateBancorp Buy
- Word ‘Women’ Literally Never Appears in U.S. Senate’s 142-Page Health-Care Bill
- Stephen Pierce, Goldman Sachs Global Head of Equity Markets, To Retire
- Al Gore 'Not Very Smart,’ But Became Filthy Rich Using Simple Investing Formula - Charlie Munger
- U.S. Regulators, Lawmakers Support Volcker Rule Revamp at Hearing
- Morgan Stanley Opts for Frankfurt as New EU Hub
- A New Risk for Goldman, Morgan Stanley in Stress Tests (subsc reqd)
- A Trump Bump for Law Firm of President’s Lawyer - Kasowitz Benson Torres
- JPMorgan, BofA, Goldman, Citi, Wells Fargo Pass Fed's Stress Test
- Blackstone Stock Still Trading at $31 - Its IPO Price From 10 Years Ago
- NJ Resident and NY-Based Global FX Club Charged with Solicitation Fraud, Misappropriation - CFTC
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NEWSLETTERS & ALERTS
PwC Settles $3Bn MF Global Malpractice Lawsuit
The $3 billion negligence trial filed by MF Global Holdings against its former accounting firm, PricewaterhouseCoopers, was settled just 2 weeks into testimony. Terms of the settlement were not disclosed.
Nader Tavakoli, the administrator for bankrupt MF Global Holdings, had sued PwC for $3 billion in damages, alleging that negligence by the firm's accountants led to confusion about the then-current financial health of MF Global. That 'bad' advice allegedly served as Jon Corzine’s ‘go ahead’ to have the firm invest $6.3 billion in speculative European sovereign debt. Corzine was Chairman and CEO of MF Global at the time.
Volatility in the markets, along with news about the firm’s large tenuous investment and its surprise tax write-down, led to market concern about the firm’s ability to survive. A downgrade in its credit rating ensued and ultimately led to the firm’s collapse in October 2011. For his part, Jon Corzine testified earlier in the trial that the debt instruments were low-risk and that the firm expected repayment on its investments.
That said, in January, Mr. Corzine agreed to pay $5 million and accept a lifetime ban to settle CFTC charges pertaining to MF Global’s transactions and its ultimate collapse. For PwC, which throughout the trial denied any wrongdoing, this is its second settlement pertaining to MF Global. In April 2015, the accounting firm entered into a separate $65 million settlement with MF Global investors.
With this settlement, the MF Global administrator has completed his collection efforts on behalf of the bankrupt firm and will be in a position to close out with the firm’s creditors.