The New York Federal Court ordered MF Global Holdings to pay $1.21 billion in restitution fees, in addition to a $100 penalty, for its unlawful use of customer funds, the Commodity Futures Trading Commission said Wednesday.How does Corzine manage to stay out of jail?
Litigation continues against ex-MF Global chief Jon Corzine and MF Global's former Assistant Treasurer Edith O'Brien, the CFTC said.
MF Global, a subsidiary of MF Global Holdings, collapsed in 2011 at the height of the European debt crisis when markets became spooked by the firm's $6.3 billion bet on European government bonds. U.S. authorities have accused the firm of using customer money to cover liquidity shortfalls.
The CFTC deemed MFGH responsible for MFGI's failure to notify regulators account deficiencies and its unlawful use of customer segregated funds in 2011.
Wednesday, December 24, 2014
MF Global To Pay $1.2 Billion In Restitution
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There are 2 measures of activity in Texas that are being misused. These are permits issued and rig count. Lets start with rig count. Baker Hughes breaks down rigs into vertical, directional, and horizontal. The horizontal rigs can still be pressed into service when oil is selling north of $100. When oils sells for $60 a barrel, the horizontal rigs are discontinued. The second fallacy of rig counts is it ignores productivity improvements. At one time, a rig might drill 6 wells a year. The careful companies have been releasing rigs as they increase productivity to over 20 wells per rig. Texas has a predictable permit process. So why use permits as a leading indicator of wells drilled? Why not simply used the active drilling projects number issued by the State? But again limit it to horizontal wells.
ReplyDeleteSince most of the production increase we've seen has come from horizontal drilling, isn't that really bad news for "energy independence?"
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