UPDATE: MF Global Files For Bankruptcy

Oct 31 2011 | 10:26am ET

MF Global's parent company and finance unit filed for Chapter 11 bankruptcy protection this morning, four years after the futures brokerage spun off from hedge fund giant the Man Group.

MF Global Holdings and MF Global Finance USA filed in federal Bankruptcy Court in New York. The former listed assets of $41 million and total debt of $39.7 billion, while the latter reported assets of up to $500 million and debt of up to $50 million. Trading in the company's shares has been halted, and its own trading has been suspended by the Federal Reserve Bank of New York and several exchanges.

MF Global has reportedly struck a deal to sell its assets to Interactive Brokers Group. Under the plan, negotiated over the weekend by MF Global CEO Jon Corzine and approved by the boards of both MF Global and IBG, IBG would make an initial $1 billion offer for MF Global's holdings in bankruptcy, The Wall Street Journal reports. None of MF Global's regulated entities would file for bankruptcy.

MF Global spun off from Man in 2007. Corzine, a former Goldman Sachs chairman, took the helm early last year, just months after losing his bid for reelection as New Jersey's governor. Corzine sought to transform MF Global from a futures brokerage into a full-service investment bank with a proprietary trading arm. But some of those proprietary trades, those in European sovereign debt championed by Corzine, have brought MF Global low.


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

The Life Settlement: Yield For The Investor And Cash For The Consumer

Mar 31 2015 | 6:48am ET

Investors are languishing in a yield-starved, low-interest rate environment, looking...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note