Brokerage swamped by eurozone debt files for bankruptcy

US brokerage MF Global is set to file for Chapter 11 bankruptcy protection over its £4bn eurozone debt exposure, the BBC reports.

MF Global, which has 2,000 staff, of which 600 are based in London, is planning to sell its assets to rival Interactive Brokers Group. The move follows its recent disclosure of a $191.6m (£120m) Q3 loss, prompting its shares to fall in value by two thirds and ratings agencies to cut its credit rating to junk status. Chief executive of MF Global, Jon Corzine, made substantial bets on sovereign bonds issued by European countries soon after joining the firm last year, according to reports. MF Global was spun off from a hedge fund in 2007 and is the one of the world's largest players ...