MF Global must pay back $1.21 billion to ensure customers recover the losses sustained when the brokerage firm failed in 2011.
The restitution is being levied following a complaint filed by the Commodity Futures Trading Commission this year, alleging that MF Global unlawfully used customer funds for the firm’s needs.
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 discovered that the funds were used to pay for the company’s operations. With $41 billion in assets, MF Global accounted for the eighth-largest corporate bankruptcy in U.S. history.
The commission said Monday that a federal court has approved the consent order for the fine for customer repayment.
MF Global also faces a $100 million civil penalty that must be paid after it has fully paid customers and certain creditors.
— Associated Press
McDonald’s is trying to put the fast back in fast food. Amid slowing sales and service, the world’s largest burger chain is banking on a third drive-through window to speed things up.
Currently, patrons in cars pull up to one window to pay for their order, then pick up their meal at another window.
But starting next year in new and rebuilt restaurants, McDonald’s will implement what it calls a Fast Forward Drive-Thru. The arrangement will allow customers whose orders aren’t ready to bypass the second window and pull up to a third window to wait.
“This test, along with other recent additions like double-lane and side-by-side drive-throughs, will enable us to better serve more customers quickly with the fast, friendly service they have come to expect from McDonald’s,” spokeswoman Lisa McComb said in a statement.
McDonald’s says its first drive-through opened in 1975 near an Arizona military base, serving soldiers prohibited by their commanders from leaving their cars while in uniform.
— Los Angeles Times
● The Senate Banking Committee will vote on Thursday on President Obama’s nomination of Janet Yellen to be the next chair of the U.S. Federal Reserve. The committee will meet at 10 a.m. to vote on whether to send Yellen’s nomination to the full Senate for consideration, the panel said in a statement Monday. The Fed vice chair, whose hearing before the banking panel last Thursday to vet her credentials for the post was widely viewed as having gone well, is expected to win confirmation with relative ease.
● U.S. homebuilders’ confidence in the housing market held steady this month, but many are worried that another fight over the federal budget could cause would-be buyers to put off home purchases. The National Association of Home Builders/Wells Fargo builder sentiment index released Monday stayed at 54 this month. October’s reading was revised one point lower from its initial estimate. Readings above 50 indicate more builders view sales conditions as good, rather than poor. The index has stayed above 50 for six straight months after being below that level since May 2006.
● Ex-SAC Capital Advisors fund manager Mathew Martoma lost a request to have his insider-trading trial postponed after his lawyers said they received “newly discovered” e-mails and other documents from federal prosecutors. Martoma’s attorney, Richard Strassberg, last week asked for a two-week delay in Martoma’s Jan. 6 trial, in a letter to U.S. District Judge Paul Gardephe in Manhattan. Defense lawyers said they needed the time to analyze 114,757 pages of new documents and prepare witnesses. Gardephe denied the request.
● A U.S. appeals court on Monday breathed new life into Apple’s long-running attempt to secure an injunction banning the sale of some devices made by Samsung Electronics, ordering a California judge to reconsider imposing a permanent sales ban on some Samsung products. The two companies have been in a long-running and global battle over patent infringement. The U.S. District Court for the Northern District of California had refused the injunction in December. Apple had requested it because of a ruling that Samsung products infringed on three design and three utility patents related to mobile devices.
— From news services
● 8:30 a.m.: Third-quarter employment cost index released.
● Earnings: Best Buy, Campbell Soup, Home Depot.