MF Global 'set for Chapter 11 bankruptcy protection'

[dipsydoodle]

Source: BBC News

MF Global is set to enter Chapter 11 bankruptcy protection after unveiling $6.3bn (£4bn) of exposure to eurozone debt, reports have said.

The US brokerage, which has 2,000 staff worldwide including 600 in London, is said to be planning to sell its assets to rival Interactive Brokers Group.

MF Global worried markets last week after disclosing a $191.6m (137m euros; £120m) quarterly loss.

This saw its shares fall by two-thirds, and its credit rating cut to junk.

Read more: http://www.bbc.co.uk/news/15519124

---

The first of many hopefully.

[reformist2]

1. Let's not hope for too many. The possibility of the domino effect is too dangerous.

We could end up having a repeat of 2008, this time with no bailout!

[dipsydoodle]

3. I meant with respect to currency manipulation.

Fuck the lot them.

[bemildred]

4. I agree with post #3, fuck the lot of them.

These parasites ARE the problem, we can do much better.

[reformist2]

8. Be careful what you wish for.

[SpiralHawk]

2. ...and another domino goes clickity-clack...

[olleander]

5. Democratic Governor Joh Corzine

This is the firm of John Corzine. A leading Democratic voice in public life. One cannot forget that the people's party has been taken over by economic predators with the mask of all the appropriate social positions. This is the Governor who came from the Senate who came from Goldman Sachs. He made himself wealthy beyond measure and did not serve the people. I doubt this will affect his personal fortune. He is losing other people's money.

[Hotler]

6. Welcome to DU. k&r

[banned from Kos]

7. Greek/Euro bonds purchased by MF caused their credit status cut to "junk"

Corzine risked their capital on crappy bonds - that is the story here.

[Roland99]

10. And Corzine stands to walk away with over $12 million >>>>

http://www.zerohedge.com/news/did-jon-corzine-just-get-121-million-golden-parachute

[rayofreason]

16. The Midas touch?...

...for himself, not others that is. They get the anti-Midas touch as all turns to crap.

[dipsydoodle]

9. MF Global Suspended From Trading With N.Y. Fed

MF Global Holdings Ltd., the futures broker run by Jon Corzine, was suspended from conducting new business with the New York Federal Reserve today after posting a record loss.

The firm’s board met through the weekend in New York to consider options including a sale to avert failure, according to a person with direct knowledge of the situation. It was stopped from doing new business with the New York Fed until it shows it’s able to fulfill its responsibilities as a primary dealer, according to a statement on the regulator’s website. Trading in MF Global’s stock was also halted.

Pressure is mounting on Corzine, the former governor of New Jersey and U.S. senator, after MF Global declined 67 percent last week and its bonds started trading at distressed levels amid its disclosures of bets on European sovereign-debt. MF Global was in discussions with five potential buyers for all or parts of the company, including banks, private-equity firms and brokers, said the person, who asked not to be identified because the talks are private.

“While the pieces are attractive, figuring out potential buyers is a lot harder,” Robert Rutschow, an analyst with CLSA Credit Agricole Securities in New York, said in an Oct. 28 note to clients. “In the current environment, banks can’t even go to the bathroom without permission from their regulator, let alone buy a brokerage firm that was looking to grow proprietary trading and expand risk-taking activities.”

http://www.bloomberg.com/news/2011-10-30/corzine-s-mf-global-faces-pivotal-days-as-firm-considers-sale-bankruptcy.html

[beemer27]

11. Puzzled

"is said to be planning to sell its assets to rival Interactive Brokers Group"

If it is bankrupt, how can it have assets? If it does "sell it's assets", who gets the money?

Just curious.

[Yupster]

20. In a bankrupcy

if the company is to be liquidated, whatever money comes from the sale goes to the bondholders. They are first in line for payment. Unless it's GM. Then the bondholders only get 10 % of the equity.

[Yupster]

21. In a bankrupcy

if the company is to be liquidated, whatever money comes from the sale goes to the bondholders. They are first in line for payment. Unless it's GM. Then the bondholders only get 10 % of the equity.

[Dover]

12. MF Global Files For Chapter 11 Bankruptcy

Source: Reuters

(Reuters) - MF Global Holdings Ltd, 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 Inc broke down earlier Monday, 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 U.S. casualty yet from the euro-zone debt crisis, and harkens back to 2008 when Lehman Brothers collapsed at the height of the U.S. financial crisis.



Read more: http://www.reuters.com/article/2011/10/31/us-mfglobal-idUSTRE79R4YY20111031

[no_hypocrisy]

13. I can't understand why there isn't language in Golden Parachute Agreements of CEOs that

if the corporation files for bankruptcy, the CEOs get less, much less than their otherwise contracted Leaving Bundle of Cash.

[Dover]

14. I think it could be said that some companies are created

as ponzy schemes like Enron...built on lies and false reports. In that case the CEO did his job even though it didn't last all that long.
Not saying that's the case with this company, but just taking high risks or bets seems to be the new normal.

[AngryAmish]

15. unexpectantly!

[DeSwiss]

17. K&R

MF Global files for bankruptcy after deal unravels

Reuters
October 31, 2011
By Jonathan Spicer and Nick Brown

NEW YORK - MF Global Holdings Ltd filed for bankruptcy protection after a tentative deal with a buyer fell apart, marking a stunning failure for CEO Jon Corzine who tried to turn the more than 200-year-old futures brokerage into a mini-Goldman Sachs.

The meltdown made MF Global the biggest U.S. casualty of the European debt crisis, as the brokerage paid the price for the former Goldman CEO's big, risky bets on sovereign debt. The Chapter 11 bankruptcy filing came after talks to sell a variety of assets to Interactive Brokers Group Inc broke down earlier on Monday, a person familiar with the matter said.

MF Global's collapse has raised questions about whether the 64-year-old Corzine's affinity for risk-taking finally caught up to him after a career that took him to the top echelons of Wall Street and then into politics as a U.S. senator and to the New Jersey state governor's mansion.

The bankruptcy, the seventh-largest by assets in U.S. history, is reminiscent of 2008 when Lehman Brothers collapsed at the height of the financial crisis. But market participants said the impact from this collapse, far smaller, would likely be contained.

http://finance.yahoo.com/news/MF-Global-files-for-rb-3630437589.html?x=0&sec=topStories&pos=main&asset=&ccode=">MORE

- What a fine example of bi-partisanship.......

DeSwiss






"When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes… Money has no motherland; financiers are without patriotism and without decency; their sole object is gain." ~Napoleon Bonaparte, Emperor of France, 1815~

[Hotler]

19. k&r and another k&r for the awesome Napoleon quote. eom.

[Turbineguy]

18. Some strange things with this one.

Traders not allowed to unwind positions. Is that to make CDS's owned by speculators worthless?