MF Global Holdings Ltd. (NYSE: MF) has been halted pending news this Monday. Workers may be allowed into the offices, but the firm is being cut off from transacting business.
The company issued a one sentence press release this morning saying, “MF Global today confirmed that the New York Federal Reserve has suspended MF Global’s designation as a primary dealer.”
- UPDATE: After 10:15 AM EST reports were coming out that MF Global is filing for Chapter 11 under bankruptcy protection.
Now there are reports that MF Global traders are not being allowed to access the CME trading floor by CME Group Inc. (NYSE: CME) and additional reports that IntercontinentalExchange, Inc. (NYSE: ICE) is only allowing close-out transactions to be made by MF Global traders.
This is unfortunately one of those situations where a company is dying on the vine. If financial firms cannot transact business, they are out of business.
Former New Jersey governor Jon Corzine was shown over the weekend to be instrumental in the bets that have brought the firm down. Killing a big public financial company won’t be a great thing for what was otherwise a great career.
JON C. OGG
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