Jon Corzine's bid to revive his Wall Street career crashed and burned on Monday when his futures brokerage MF Global Holdings Ltd filed for bankruptcy protection following bad bets on euro zone debt, Reuters reports
Corzine, who once ran Goldman Sachs and became governor of New Jersey, had been trying to turn MF into a mini Goldman by taking on more risky trades.
But once regulators forced it to disclose the bets on debt issued by countries including Italy, Portugal and Spain, the firm's fortunes quickly began to unravel.
MF Global's meltdown in less than a week made it the biggest U.S. casualty of Europe's debt crisis, and the seventh-largest bankruptcy by assets in U.S. history.
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 shares plunged last week as the company's credit ratings were cut to junk….
Regulators called an emergency call this afternoon. Does this mean a broader risk? Stay tuned for more details as they become available...
Read more at http://www.reuters.com/article/2011/10/31/us-mfglobal-idUSTRE79R4YY20111031
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