MF Global has agreed with the Commodity Futures Trading Commission to settle charges of wrongdoing during the collapse of the futures brokerage, which left a $1.6 billion shortfall in customer accounts, a court document showed

But Jon Corzine, the former New Jersey governor and U.S. senator, could still object to the agreement, the document showed, and so could the other individual defendant, MF Global's former Assistant Treasurer Edith O'Brien.

"(MF Global) Holdings and the CFTC have agreed to the terms of a Final Consent Order," said Jane Rue Wittstein, a lawyer at Jones Day who represents the company, in a letter to the Manhattan District Court.

Once run by Corzine, a former Goldman Sachs co-chairman, MF Global went under 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 and the use of customer money to cover liquidity shortfalls.

The CFTC, which regulates the trading of futures and other derivatives, is seeking to ban Corzine and O'Brien from the industry and wants to levy fines against the two.

There were no further details of the settlement.

Corzine and O'Brien had maintained their right to object to the consent order, the letter also said. The parties sought a delay from the court until Dec. 22 to come up with a final wording of the settlement, the letter said.

If the two do not settle with the regulator, they may have to defend themselves in a trial.

The CFTC previously settled with the firm's brokerage unit, MF Global Inc, which agreed to return more than $1 billion to harmed customers and pay a $100 million penalty.


(Reporting by Douwe Miedema; Editing by Alan Crosby)