MF Global Files for Bankruptcy
Court records show that the company has now filed for bankruptcy.
That's according to a brief Reuters report, which cited a person familiar with the matter.
This comes after reports early this morning that the firm was on the verge of filing for bankruptcy. The company has been struggling for quite some time, with MF Global (NYSE: MF) shares dropping more than 70% since August. Not even the realignment of its global equities business could prevent the worst from happening.
Questions remain as to who is responsible for the company's failure. Just moments ago, Deutsche Bank suspended its coverage of the stock, saying, “We are suspending coverage of MF Global given its current state of affairs (with the possibility of a firm sale, asset sales, and/or filing Chapter 11 bankruptcy as being reported by the WSJ yesterday) and the lack of real time financial data in a rapidly evolving environment for the company.” Consequently, Deutsche Bank said that its estimates and price target “should no longer be relied upon.”
Three-Month Chart: Yahoo! Finance
Now it seems that MF Global's situation may be even worse than it first appeared. According to Zero Hedge, the company might owe CNBC nearly $900,000. Zero Hedge also reports that Jon Corzine, MF Global's CEO, could walk away with $12.1 million – all because, you know, CEOs totally deserve it.
Will Interactive Brokers Group (NASDAQ: IBKR) decide take some of MF Global's assets off the company's hands? That remains to be seen. But Reuters is reporting that the deal may be over. Reuters also says that CME Group Inc. (NASDAQ: CME), ICE Futures U.S. and the Singapore Exchange have all halted MF Global's operations “in some form.”
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