MF Global Fires All Of Its Employees
NEW YORK (CBSNewYork/AP) — Defunct trading company MF Global Inc. says it is terminating its entire workforce of 1,066 employees a week after filing for bankruptcy protection.
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.
MF Global declared bankruptcy after losing money on a number of bad bets on derivatives contracts, precipitated by the European financial crisis.
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An audit revealed potentially millions in missing client funds.The FBI and U.S. attorney are investigating.
The company did not immediately return a call seeking comment. It said in a statement that all the employees were notified of their termination Friday. The company said it is working to vacate its headquarters in New York as soon as possible and will close the facility.
Last week, former New Jersey Gov. Jon Corzine resigned as CEO of the company. He joined MF Global last March.
Earlier this year, there were reports that Corzine was being eyed as a possible replacement for Treasury Secretary Timothy Geithner.
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