Major Finance Co. MF Global Fires 1,066 Employees
- Posted on November 11, 2011 at 12:33pm by
Becket Adams
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NEW YORK (AP/The Blaze) — Defunct trading company MF Global Inc. says it is terminating 1,066 members of its workforce.
The terminated employees will be paid through Nov. 15 and will have health coverage through the end of the month, but they will not get severance.
However, the MF Global trustee said the liquidation and terminations do not apply to the parent company, MF Global Holdings, which listed 2,847 employees as of September, reports Fox Business.
The company said Friday it is dismissing workers in accordance with a bankruptcy court-mandated liquidation. Between 150 and 200 former employees are being hired to assist with the liquidation and court proceedings.
Allegedly, they are also “exploring ways to immediately vacate” MF Global’s Manhattan offices so that they can rent the smaller and less expensive offices for the trustee staff.
The company will continue to rent its Chicago office, the trustee said to Fox, but for a “limited” amount of time as the business there is wound down.
The company said the firing of employees and closing of operations “is a necessary part of the court-ordered liquidation of MF Global and is consistent with the trustee’s obligations…to preserve assets.”
MF Global’s downfall has been attributed to, among several other things, very bad bets on some “$6.3 billion of European government debt,” reports CNN Money.
When those bets didn’t pay off—and their financial problems turned into a disaster—many believe that MF Global may have started using its clients money (though it is still unclear how the money may have been used).
It’s important to note that using clients money to help ones bottom line with risky investments could be a violation of Commodities Futures Trading Commission rules on such trades, according to regulators and financial experts.
Not surprisingly, when MF Global was unable to account for a $593 million of MF customer funds, Federal investigators got involved.
The probe of MF Global’s cash movements is being conducted by the U.S. Justice Department, the Commodity Futures Trading Commission, the Securities and Exchange Commission and the bankruptcy trustee’s staff in cooperation with the Securities Investor Protection Corp., James W. Giddens, the trustee, said on his website.
In addition to the missing funds, many have also criticized ex-CEO John Corzine, the former governor of New Jersey, for abruptly resigning hours before conflicting reports surfaced about the whereabouts of the missing customer money.
The company said in a statement that all the employees were notified of their termination Friday.
Updates have been added since this story was originally posted. The Associated press contributed to this report.
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Comments (57)
shirtsbyeric
Posted on November 11, 2011 at 2:06pmSo Jonnie got out last week? What was his parting gift?
Report Post »13th Imam
Posted on November 11, 2011 at 4:52pmThey told you in the article. Johnnies take was 593 Million , TAXPAYERS dollars. Five Hundred and ninety three MILLION TAXPAYER DOLLARS. Stolen by John Corzine, DEMOCRAT New Jersey
Report Post »Okie from Muskogee
Posted on November 11, 2011 at 1:57pmAmazing isn’t it. Corzine who railed about Banks, Lehman and Sterns, having to high leverage, 30-1 or so causing the crisis, turns around and does the same thing himself with this Bank at 40-1 leverage leading to it’s meltdown…..Corzine made his money, that’s all that matters to him….And we all wonder why so many are ready to lynch any banker they see…..absolutely amazing……
11-11-11 Money Bomb @ http://ronpaul2012.com/
Already at 300K!!!
Report Post »Moozmom
Posted on November 11, 2011 at 1:55pmI always thought MF Global was a poor choice of name for a company. Sorry
Report Post »whatsupdoc
Posted on November 11, 2011 at 1:41pmFunny, no mention of the bonuses paid out before the terminations… Like Fannie and Freddie, failure and fraud are always rewarded in government and cronyism.
Report Post »paulusmaximus
Posted on November 11, 2011 at 1:54pmMy thoughts also! Is “bad bets” the knew progressive catch phrase for we just threw your money out the window?
Report Post »Jim in Houston
Posted on November 11, 2011 at 1:18pmWhen will we see Corzine doing the perp walk?
Report Post »AnAmerican111
Posted on November 11, 2011 at 1:16pmFormer New Jersey Governor Corzine as the CEO!…………….
Report Post »Imagine that. A Democrat who just about bankrupted New Jersey running a business!
Liberal comedy at best if it wasn’t so pathetic
havsumtea
Posted on November 11, 2011 at 1:58pmCouldn’t have said it better than that!
Report Post »circleDwagons
Posted on November 11, 2011 at 1:15pmgood news, good news the fleabaggers will be happy. i can’t believe obama is not on tv bragging
Report Post »Santa Cruz Kid
Posted on November 11, 2011 at 1:12pmDoes anyone know what, “MF” stands for? I have my suspicions.
Report Post »havsumtea
Posted on November 11, 2011 at 2:00pmHey Santa Curz Kid, you wouldn’t happen to be related to anyone in Mesa, AZ, would you?
Report Post »Santa Cruz Kid
Posted on November 11, 2011 at 2:35pmNo
Report Post »The_Almighty_Creestof
Posted on November 11, 2011 at 1:06pmIt is the bums final year in office. Time to watch the E.O.’s coming out of the whitehouse and the visitors log. Who will be asking for pardons and executive clemecy?
Report Post »Mr Sanders
Posted on November 11, 2011 at 1:04pmI don’t think the “emotions” behind deivatives are there anymore.
All these brilliant & fantastic green/ progressive company closures are just clearinghouses to money launder for the Demo-Prog individuals or causes.
Report Post »I_am_a_53percenter
Posted on November 11, 2011 at 1:04pmAnother democrat politician who proves they cannot make a payroll or live without government supporting them; they live in the world of business theory (academia) not practice. Some of these dems have no comprehension of capitalism whatsoever.
Report Post »Survivor101
Posted on November 11, 2011 at 1:03pmAdd a democrat…same result – bankruptcy for everyone!!! (except the democrat that seemed to have gained wealth from everyone else involved)
Report Post »Mr Sanders
Posted on November 11, 2011 at 1:01pmLooks like we lost some of that 10,000 jobs gained for last month… aey?!!
Report Post »lukerw
Posted on November 11, 2011 at 1:00pmIf Italy falls… this will be just one of many!
Report Post »Wigglesworth
Posted on November 11, 2011 at 1:00pmHope and change brought to you by Obama’s best buddy. Thanks John Corzine.
Report Post »housetops
Posted on November 11, 2011 at 12:52pmFinance not fianance for crying out loud!
Report Post »ozchambers
Posted on November 11, 2011 at 12:57pmBlaze makes typos. I wonder if the Obama gang will make a math error in subtracting this from the number of “jobs saved or created.”
Report Post »DoBeDwarf
Posted on November 11, 2011 at 12:58pmare you keeping a tally?
Report Post »cdavis411
Posted on November 11, 2011 at 1:01pmturns out profits do matter
Report Post »FNTM
Posted on November 11, 2011 at 12:52pmHey guys, what does this OWS mean? Out of work slouchers or what?
Report Post »BobatTREB
Posted on November 11, 2011 at 1:00pmFor the OWS socialists: Socialism is rottenness in the bones. It is institutionalized envy. Capitalism does not bailout businesses that make errors; it lets them fail so stronger, wiser businesses can grow out of the opportunity. Socialism bails them out and props up failing models.
But, socialism also keeps a ‘few’ in charge and in power. That’s what those behind OWS are aiming for.
Report Post »EJames439
Posted on November 11, 2011 at 1:14pmOWS = Obama‘s Warriors for Socialism would be it’s true meaning based on how they’ve represented themselves. However, in true radical progressive fashion, the cowards who coordinated this mess slightly re-named it “Occupy Wall Street”…ya know, drop the radical pose……
Report Post »OhSnappage
Posted on November 11, 2011 at 12:52pmA business does poorly and continues to be bad, it deserves to fail.
Report Post »’nuff said.
Thorkratos
Posted on November 11, 2011 at 12:51pmWe need to pray for all these fired employees and their families during these difficult times. Pray that they will seek God to heal and not the government’s leper messiah.
Report Post »kunman
Posted on November 11, 2011 at 12:51pmAnother former Democrat killing another American business
Report Post »don young
Posted on November 11, 2011 at 12:49pmThis must be another of obama,s friends and projects.
Report Post »In detroit
Posted on November 11, 2011 at 12:49pmI own a small transportation company , i get emails from ceo,s cfo,s asking for a job cant help em , rather than a 70 thousand dollor education , should of told the public to open small businesses im not rich but im not laid off and the bills are paid , im sorry correction im rich in spirot lol
Report Post »jmckenz1
Posted on November 11, 2011 at 12:48pmIm sure the ex NJ governor will pay them any vacation and back pay owed as soon as Obama bails them out
Report Post »Will4Freedom
Posted on November 11, 2011 at 12:58pmJust what I need. A flood of IT people getting laid off the same time as me. Rats!
Report Post »ares338
Posted on November 11, 2011 at 12:46pmUh oh…..that means another 1066 bad smelling OWSers.
Report Post »garylee123
Posted on November 11, 2011 at 12:54pmI prefer to call them “fleabaggers”.
Report Post »RightPolitically
Posted on November 11, 2011 at 12:35pmKeep betting on SOCIALISM. It ‘ill git ya every time!
Report Post »Snowleopard {gallery of cat folks}
Posted on November 11, 2011 at 12:41pmGuess they figured on their good buddy Mr Obama to pull their fannies out from the fires again.
Report Post »In detroit
Posted on November 11, 2011 at 12:50pmYeah its working out great , poor bastards no jobs waiting for them eather
Report Post »Apple Bite
Posted on November 11, 2011 at 12:51pmSince 2007….
Report Post »So much for longevity.