The night before MF Global Holdings Ltd. (MF) posted its biggest quarterly loss, triggering a 48 percent stock plunge, Chairman and Chief Executive Officer Jon Corzine appeared at a steak dinner at New York’s Helmsley Park Lane Hotel for a speech to a group of bankers and traders.
MF Global Holdings Ltd. (MF), the holding company that filed for bankruptcy protection, was suspended from trading on the London Metal Exchange. CME Group Inc., the largest futures market, also suspended the broker-dealer unit MF Global Inc. as a clearing member.
MF Global Holdings Ltd., the holding company for the broker-dealer run by ex-Goldman Sachs Group Inc. (GS) co-chairman Jon Corzine, filed for bankruptcy protection as it seeks to reorganize after making bets on European sovereign debt. Its broker-dealer unit, MF Global Inc., faces liquidation.
J. Christopher Flowers, the private- equity investor who installed Jon Corzine as the top executive at MF Global Holdings Ltd., may book a loss of $47.8 million on its investment in the New York-based broker-dealer, which filed for bankruptcy today.
MF Global Holdings Ltd. (MF)’s bankruptcy is sending some of the firm’s customers rushing for new clearing brokers after CME Group Inc. (CME) and Intercontinental Exchange Inc. blocked them from new business on their futures markets.
The following are MF Global Holdings’ largest unsecured creditors and shareholders, according to the company’s bankruptcy filing and related court papers submitted today in U.S. Bankruptcy Court in Manhattan.
Bond investors lent MF Global Holdings Ltd. (MF) $650 million three months ago in a bet Jon Corzine would succeed in turning the futures broker into a mini-version of Goldman Sachs Group Inc. The firm filed for bankruptcy before making its first interest payment on the debt.
MF Global Holdings Ltd. (MF)’s U.K. unit became the first company placed into Britain’s special administration program as regulators moved to protect financial stability after the broker-dealer’s U.S. bankruptcy filing.
MF Global Holdings Ltd. (MF)’s bankruptcy filing may prompt the U.S. Federal Reserve to “rethink” the definition of systemically important firms and to expand its oversight, according to bank analyst Richard Bove.
MF Global Holdings Ltd. (MF) told U.S. regulators this morning there were potential “deficiencies” in some customer accounts, according to a joint statement from the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Bonds of MF Global Holdings Ltd. (MF) declined to as low as 35 cents on the dollar after the futures broker run by Jon Corzine drew on its credit lines and Moody’s Investors Service and Fitch Ratings cut the firm’s ratings to junk.
Jon Corzine, who won the top job at Goldman Sachs Group Inc. by leading the firm’s fixed-income unit, now says he’s responsible for trading decisions that have almost wiped out the stock-market value of his futures brokerage.