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MF Global Bankruptcy Case Study

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The company had a global footprint with offices in New York and Chicago, Bermuda, Toronto, London, Paris, Mumbai, Singapore, Sydney, Taipei, Tokyo, Hong Kong and Dubai. It operated on more than 70 exchanges, and was the largest single broker on most of the leading platforms including the CME and Eurex.

It was announced on Nov. 2, 2011 that the MF Global bankruptcy case had been assigned to U.S. Bankruptcy Judge Martin Glenn in Manhattan. MF Global Inc.’s case docket was opened in bankruptcy court after being transferred from U.S. district court.

Series of events of MF Global

* July 2007: Man Financial, the brokerage division of U.K. hedge fund manager Man Group plc, is spun off in an initial public offering at the height of the boom in derivatives trading and renamed MF Global.

* February 2008: A trader in MF Global’s Memphis, …show more content…

25, 2011: MF Global reports a wider loss for its fiscal second quarter ended Sept. 30. The disclosure of the financial results, which were pushed out early in the wake of the Moody’s downgrade, helped spark a 48% stock drop that day. By the end of the week, MF Global had lost more than two-thirds of its market value.

* Oct. 31, 2011: MF Global filed for bankruptcy protection, after a weekend of negotiations failed to lead to a sale of at least part of the company.

* Jan. 10, 2012: Edith O'Brien asked for the MF Global case's first immunity agreement. The New York Times reported that the FBI had named O'Brien "a person of interest" in the investigation, and she was reportedly the person who pulled the trigger on a $200 million transfer of customer funds to JP Morgan Chase on the eve of MF Global's bankruptcy.

* Jan 12, 2012: about 100 MF Global customers gathered at the New York Marriott Downtown hotel to hear James Giddens - the trustee appointed to liquidate MF Global - say that MF Global Inc. had distributed about $3.8 billion thus far and had about $1.5 billion under its control, while there was still $1.2 billion

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