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

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Scene Last Night: Clinton, Schwarzman, Corzine, Neidich, Diamond

Nov 25 2014 | 5:52pm ET

Steve Schwarzman had a granddaughter yesterday morning. Last night he sat one table...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.