MF Global is apparently in talks to file for Chapter 11 bankruptcy protection. The move could come as early as Monday. Apparently, the plan is to sell assets to Interactive Brokers Group (IBKR), The Wall Street Journal reported.
Here is another CIT disaster a once heralded CEO of a major firm comes out of retirement and takes over a mid tier shop and runs into a world of trouble. The reason is simple, while the underlying trades are the same and the will most likely succeed, MF balance sheet is nowhere near as robust as GS.
While the plan isn't final, the details released so far indicate that MF Global's holding company would be the one filing for the bankruptcy protection. Then as reposrted, Interactive Brokers is planned to make an initial bid of about $1 billion at the court-supervised auction of assets. It is important to note though, that none of MF Global's regulated entities are included in the deal. However, since nothing is final, it still remains to be seen exactly how the deal will unfold.
