Tuesday's Headlines: MF Global Bankruptcy Leaves Star Bankers Adrift

eFC logo

MF Global's bankruptcy filing is throwing into question the futures of some of Wall Street's most experienced bankers, according to Bloomberg.

MF Global's CEO, Jon Corzine, who helped run Goldman Sachs from 1994 to 1999, added about 800 employees including a number of top investment bankers, as he tried to remake the broker into an investment bank. Bloomberg reports that the recruits included Michael Stockman, UBS AG's former chief risk officer for the Americas, Richard Moore, once Citigroup Inc.'s head of European fixed-income, and Jon Bass, also previously of UBS, where he was a member of the investment bank's board.

Meanwhile, according to Bloomberg, "No big banks are hiring," said Michael Karp, chief executive officer of New York-based Options Group Inc., whose recruitment firm fielded calls yesterday from at least three senior business managers at MF Global who want to move their groups elsewhere. "It's very tough to move them as a team."

When MF Global filed for bankruptcy yesterday, it became the first American financial casualty of the European debt crisis, according to the New York Times, which reported the filing listed assets of $100 million to $500 million and liabilities in excess of $1 billion. JPMorgan Chase and Deutsche are the biggest creditors to the firm, which gambled $6.3 billion on European debt.

Other News:

Credit Suisse plans to cut 1,500 jobs-3 percent of its workforce-despite a Q3 profit increase of 12 percent. [DealBook]

Normura posted a larger-than-expected loss of $590 million. [Bloomberg]

BB&T will acquire about $2.1 billion in loans from Ft. Lauderdale-based BankAtlantic. [WSJ]

Retail banks continue to nix debit card fees. [WSJ]

Allstate'S Q3 profit dropped 55 percent on storms including Hurricane Irene. [Businessweek]

Financial planning is booming as a profession in emerging markets. [Investment News]

October was the slowest month for dollars raised through IPOs in more than two years, but November's Groupon offering signals signs of a pickup. [WSJ]