It's the end of a story. The American broker MF Global, back from a black week, today took refuge in the infamous chapter eleven, Chapter 11 of the US bankruptcy lawwhich provides bankruptcy protection.
His boss's strategy, that Jon Corzine former Goldman Sachs executive and former governor of New Jersey, of wanting to transform MF into an investment bank, has been targeted by analysts and rating agencies. Particularly with respect to its positions in Europe: the group is exposed for over 6 billion dollars on Italian and European sovereign debt.
And what will happen now? According to the Anglo-Saxon press, the intermediary could now attempt an agreement with the Interactive Brokers Group, a company specializing in electronics, which could offer a billion dollars, according to reports from the Wall Street Journal. However, the newspaper specifies that the operation is very complex, because the figure, according to the rumors circulating, would seem excessive.
Other possible "predators", according to reports from Bloomberg, are Macquarie Group, Barclays, State Street and Jc Flowers. in the meantime the New York Fed has suspended transactions related to MF Global, after last week's 70% plunge.
MF Global, which specializes in commodities and derivatives, has recently consulted several law firms to study the different options that present themselves now. Among these is also the Weil, Gotshal & Manges studio, which had already followed the bankruptcy of Lehman Brothers in 2008
