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MF Global files for bankruptcy amid eurozone crisis

 

 

MF Global files for bankruptcy amid eurozone crisis

 
 
 
 
 
 
 
 
 
 
Jon Corzine, chairman and chief executive officer of MF Global, which has filed for Chapter 11 bankruptcy protection after revealing $6.3bn of eurozone debt exposure. Photograph: Andrew Harper/Pool/EPA

MF Global, a US-based futures broker that can trace its roots back to 18th-century London, yesterday became the first major US casualty of the eurozone debt crisis by filing for bankruptcy protection, putting 3,000 jobs at risk after a rescue takeover failed to materialise.

Run by the former governor of New Jersey and ex-Goldman Sachs boss Jon Corzine, the firm ran into difficulty after taking bets last year in the expectation that the price of government bonds in troubled eurozone countries would rise, amassing a $6.3bn (£3.9bn) position in the process. Instead they fell further as risk escalated in the eurozone until last week's deal to rescue the single currency.

MF Global collapsed at an astonishing speed when it reported a $192m quarterly loss less than a week ago. That prompted a downgrade of its debt to junk status and sparked an exodus of clients.

 

 

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