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- I Owned Bitcoin For a Weekend and Here's What I Learned
- SEC Appoints New Chair and Board Members to PCAOB
- FINRA, Georgetown Team Up to Deliver 'Certified Regulatory and Compliance Professional' Program
- FINRA Board Meeting - This Week's Agenda
- Statement on Cryptocurrencies and Initial Coin Offerings - SEC Chair Clayton
- Company Halts Initial Coin Offering Over SEC Registration Concerns
- Kevin O'Leary Explains One Big Thing People Don't Understand About Bitcoin (But Need To)
- CME Bitcoin Futures: A Better Way to Buy (or Short) Bitcoin?
- Address at ICI's 2017 Securities Law Developments Conference - SEC Commissioner Stein
- New York Pension Fund Seeks More Pay Disclosure from Wells Fargo
- Wells Fargo Sanctions Are on Ice Under Trump Official
- Josh Brown: Here's How to Buy Bitcoin, But Realize It Could Be One Giant Bubble
- Trump's New Tax Plan Could Cost Citigroup $20 Billion
- Morgan Stanley Fires Former Congressman Harold Ford Jr.
- Al Franken Will Resign Over Sexual Misconduct Allegations - His Full Resignation Speech
- Ex-NFL Player Gets 40 Years for Running $10Mn Fraud
- Bitcoin Blows Past $15K, Adding $2K in Under 12 Hours
- Financial Adviser Settles Charges for Defrauding Private Equity Fund Investors
- New Cross Market Equity Supervision Report Cards - FINRA Phone-In Workshop, WebEx Presentation
- Mueller Just Crossed Trump's Red Line, With Deutsche Bank Subpoena
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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.