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Report: MF Global to file for bankruptcy protection after making big bets on European bonds
NEW YORK (AP) ' The New York Federal Reserve has suspended any new business with MF Global Holdings amid reports that the securities firm is desperately trying to sell itself. Trading in the company's shares is also halted.
The Wall Street Journal reported Monday that MF Global would seek Chapter 11 bankruptcy protection after large investments in sovereign bonds issued by European countries went against it. Shares plunged last week amid reports of the wrong-way bets.
Jon Corzine, the former New Jersey governor who now leads MF Global, was working to find a buyer, according to several reports. The Journal said Interactive Brokers would bid $1 billion under a court-supervised auction.
MF Global is a primary dealer, meaning it can do business directly with the Federal Reserve System.