MF Global filed for bankruptcy after suspend dealing with broker.

Jon CorzineNew York: MF Global filed for bankruptcy on Monday morning, after the Federal Reserve Bank of New York and the major exchanges suspended dealings with the broker-dealer led by Jon Corzine.

The bankruptcy filing ensued talks to sell a variety of assets to Interactive Brokers Group Inc broke down earlier Monday, sources said. Hours prior, central banks and exchanges had slapped the broker with suspensions.

MF Global Finance USA Inc also filed for Chapter 11 protection, court records show. Both MF Global entities filed for protection from creditors with US bankruptcy court in Manhattan.

MF Global twisted through the weekend and into Monday to find buyers for all or parts of the company, whilst at the same time hiring restructuring and bankruptcy advisers in case nothing could be done.

The company’s shares and bonds forced in current days. In the past week, MF Global posted a quarterly loss, its shares fell by two-thirds and its credit ratings were cut to junk.

The company hired boutique investment bank Evercore Partners Inc to help find a buyer, separate sources said this past week.


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