MF Global Inc. Fires its Entire Broker-Dealer Workforce
MF Global Inc. fired its entire broker-dealer workforce of 1,066 on Friday as the brokerage firm closed its New York office and liquidated in an attempt to return assets to customers under trustee guidance.
The brokerage firm filed for Chapter 11 Bankruptcy on October 31, and will pay employees through Nov. 15, according to a statement Friday, published in Bloomberg Businessweek. According to the statement from the office of the trustee, James Giddens, as many as 200 former employees are being rehired to wind down the operation.
According to Bloomberg, some employees of MF Global Inc., the broker-dealer unit of bankrupt MF Global Holdings Ltd., learned they were being fired from news reports, a person familiar with the matter said. A press release was distributed to and reported by the new media before MF Global employees who were fired were notified, according to the person who declined to be identified.
“We were well into the process of notifying employees and were attempting to personally reach as many employees as possible when the release went out,” said Kent Jarrell, a spokesman for Giddens.
MF Global Holdings Ltd., which was run by former New Jersey governor and Goldman Sachs Group Inc. co-chairman Jon Corzine, filed for Chapter 11 after a $6.3 billion bet on the bonds of some countries in Europe. The Chapter 11 filing was made after the bet on bonds prompted regulator concerns and a credit rating downgrade.