The famous American futures brokers MF global companies due to the European debt investment failure, October 31,, in New York southern bankruptcy court protection from bankruptcy.
This is not only the first U.S. financial institutions by the European debt crisis because of the influence and bankruptcy, and with asset size calculation, this also is the nation's fifth largest financial institutions bankruptcy. Therefore, MF bankruptcy news once comes out, and financial markets in the United States by shock, and lead to people in U.S. financial institutions of Europe debt risk exposure was worried.
Bets on the debt
MF in the industry reputation not small, is an influential derivatives and futures brokers in one of more than 70 futures and global Commodity Exchange has membership, but also the U.S. government designated 22 home Treasury "level 1 underwriter," one.
MF chief executive Jon cole tianjin not only served as governor of New Jersey, the more in 1994 to 1999 U.S. investment bank Goldman sachs as famous. In the 2010 years after capturing MF, cole tianjin started there will be two hundred DuoNian history company transformed into "mini versions Goldman sachs". Therefore, he added the company's risk investment scale, and the company has its own money for risky investments, including have invested heavily in the European sovereign bonds. According to disclosure, of MF had $6.3 billion of Italy, Spain, Belgium, Portugal and Ireland bonds.
According to MF10 announced on 25 earnings, just finished second in the quarter, the company's loss as much as $191 million, record. In the past 12 quarters, MF only three quarter earnings.
Speeding bankruptcy
In view of the great European debt MF risk exposure, including moody's investors service, fitch ibca in the rating agencies have home last week will its rating down to "junk" class, cause MF share price time in less than a week, plunged 67%, wiping out two-thirds.
Market rumours that at MF declared bankrupt before, many customers have to worry about its capital situation, they pull the plug and cancellation of the account.
According to media reports, in order to meet the short-term liquidity needs, MF in just the past weekend and five potential buyers for the speeding consultation, ready to sell the company's assets, but failed.
October 31, morning, the New York federal reserve bank announced the suspension of MF and business. Later, Treasury officials say, including the United States securities and exchange commission and the commodity futures trading commission and the federal reserve, the federal regulators already held a conference call, to assess.
In the United States after the stock market opened, MF formally announced the file for bankruptcy protection. And just a few days ago, cole tianjin also secured said the company will "successful management these risk exposure". Therefore, when the MF declared bankruptcy, the company's 2870 employees to panic.
A MF staff said, he is from TV on the news of the company went bankrupt know, "is completely shocked". And the company's human resources department is also busy call, notice a few week before the new hire staff terminate employment agreement.


 



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