Bankruptcy, Brokerage Firm | featured news

Jon Corzine's aggressive bets on European sovereign debt while head of the MF Global Holdings Ltd brokerage led to the firm's dramatic collapse in 2011, according to a report by the bankruptcy trustee.

The Feds arrested Peregrine CEO Russell Wasendorf, Sr. who attempted suicide four days ago after his brokerage went bankrupt losing $215 million in client assets.

Gabe Sherman argues that Dodd-Frank has already ended Wall Street as we know it. So how did MF Global go up in flames last year? The brokerage firm’s bankruptcy was mostly the outcome of failed, risky bets it placed through complex derivatives, and it lost an estimated $1.2 billion of its customers’ money in the process.

The amount of customer funds missing from accounts at the bankrupt brokerage MF Global “may be as much as $1.2 billion or more,” the trustee overseeing the firm’s liquidation said Monday. That would be roughly double previous estimates of about $600 million. In a statement, trustee James W. Giddens said the estimate is preliminary and “may well change.”

The 1,066-member workforce of MF Global Holdings Ltd's brokerage has been terminated, the latest aftershock to the parent company's $41 billion collapse nearly two weeks ago.

The Federal Bureau of Investigation plans to examine MF Global Holdings Ltd amid concerns about missing client funds at the futures brokerage, the Wall Street Journal said Tuesday, citing a person familiar with the matter.