MF Global files for bankruptcy
New York, November 1, 2011
MF Global Holdings Limited, the futures broker run by former Goldman Sachs chief Jon Corzine, has filed for Chapter 11 bankruptcy after a tentative deal with a buyer fell apart.
The firm's meltdown in less than a week is a stunning setback for Corzine, who sought to turn MF Global into a mini-Goldman.
Corzine became CEO last year after losing his governorship of New Jersey, and his big bets on euro-zone debt sealed the company's fate.
The bankruptcy filing came after talks to sell a variety of assets to Interactive Brokers Group broke down earlier, a person familiar with the matter said.
Earlier, central banks and exchanges had slapped the broker with suspensions. The bankruptcy makes MF Global the most prominent US casualty yet from the euro zone debt crisis, and harkens back to 2008 when Lehman Brothers collapsed at the height of the US financial crisis.
But market participants said the impact from this collapse, far smaller, would likely be contained.
The New York Federal Reserve suspended MF Global from conducting new business with the central bank.
CME Group ICE Futures US and Singapore Exchange all halted the broker's operations in some form.-Reuters