MF Global filed for bankruptcy in 2011 after unauthorized transfers of customer funds.
MF Global Holdings Ltd. filed for Chapter 11 protection on October 31, 2011. The brokerage had made a large, highly leveraged bet on European sovereign debt, and concern about those positions damaged confidence in the firm.
Investigations found that customer money had been transferred improperly to cover shortfalls in the company’s accounts. The missing funds led to a major regulatory and legal controversy because customer assets were supposed to be kept separate from the firm’s own money.
The company’s bankruptcy was one of the largest U.S. financial failures since the 2008 crisis. Jon Corzine, a former U.S. senator and New Jersey governor, was MF Global’s chief executive at the time.