Welcome to the Moral Hazard Olympics Fall Games 2011, wherein some people simply never learn their lesson. CEO Jon Corzine (Jersey Shore name: “The Dislocation”) seems to have put the firm and it’s 1900 employees into bankruptcy.
I have no idea what the fallout from this will be, but the filing came today after Corzine was unable to find a buyer to save the shareholders…
MF Global filed for bankruptcy protection for the United States parent company on Monday, the first American financial casualty of the European debt crisis.
In the Chapter 11 filing in Federal Bankruptcy Court in Manhattan, the firm’s parent company listed assets of $100 million to $500 million and liabilities of more than $1 billion. JPMorgan Chase is identified as the biggest creditor, with a claim of $1.2 billion as the trustee on behalf of bondholders. Deutsche Bank is the second biggest, with a $325 million claim on behalf of bondholders.
More to come…