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MF Global Files for Bankruptcy Protection - (www.bloomberg.com) MF Global Holdings Ltd., the holding company for the broker-dealer run by former New Jersey governor and Goldman Sachs Group Inc. co-chairman Jon Corzine, filed for bankruptcy after making bets on European sovereign debt. The New York-based firm listed total debt of $39.7 billion and assets of $41 billion in Chapter 11 papers filed today in U.S. Bankruptcy Court in Manhattan. Its finance unit, MF Global Finance USA Inc., also filed, with debt of as much as $50 million and assets of as much as $500 million. “The boards of directors of both entities authorized the filing of the Chapter 11 petition in order to protect their assets,” the companies said today in a statement.
Jon Corzine's Overconfidence and MF Global Demise - (www.cnbc.com) Jon Corzine may not be the wild risk taking trader that some media accounts portray, but the downfall of MF Global can be laid squarely upon his shoulders. Corzine reshaped the trading operations of MF Global, hiring thousands of new employees while laying off long-termers. And he made the transformation in a short period of time. The model he was trying to impose, very clearly, was Goldman Sachs of the 1990 and early 2000s. And during that time traders often operated as if the firm was just a big hedge fund. But Corzine’s weakness was not an undue appetite for risk. He wasn’t a guy who looked for the riskiest tranches of debt or got his thrill with long odds. His weakness seems to be something more like overconfidence. In his head he holds something that is almost the opposite of the efficient capital market hypothesis. It’s what one former co-worker called the “efficient Corzine hypothesis.”
Call MF Global' s CEO Jon Corzine the $325 Million ... - CNBC.com - (www.cnbc.com) We all know about MF Global's troubles . We all know about CEO Jon Corzine's struggles since taking the helm. Less well known is that back in August, the commodities giant sold $325 million of five-year unsecured bonds that included a provision that would offer higher interest rates if Mr. Corzine left the firm for a government job. Given the lackluster share performance since Mr. Corzine took over, such covenants probably seem odd, but at the time of the debt sale, it was considered crucial to closing the transaction. "Corzine was a huge selling point," said one of the senior bankers at Jefferies who brought the offering public. "It went from a deal that was not getting done, to a deal that got done." So what happens if shareholders give Mr. Corzine's the boot? Well, according to that banker, an involuntary departure would not trigger the so-called Corzine covenants.
Beacon Power bankrupt; had U.S. backing like Solyndra - (www.reuters.com) Beacon Power Corp filed for bankruptcy on Sunday just a year after the energy storage company received a $43 million loan guarantee from a controversial U.S. Department of Energy program. The move comes about two months after solar panel maker Solyndra also filed for bankruptcy, setting off criticism of the government loan program. The department guaranteed $535 million in loans to Solyndra, and Congress is investigating whether political influence played a role. Beacon Power used the government-guaranteed-loan to build a 20-megawatt flywheel energy storage plant in Stephentown, New York. The company said in documents filed with Delaware's bankruptcy court that it had $72 million in assets and $47 million in debts.
Draghi in Battle Mode on Day One as Debt Crisis Torments ECB - (www.bloomberg.com) Jean-Claude Trichet had almost four years to settle into the role of European Central Bank president before being thrown into crisis-fighting mode. Mario Draghi goes to battle on day one. Draghi, who succeeds Trichet tomorrow, becomes chief guardian of the euro with its 17-nation economy facing the risk of recession, a victim of the two-year-old sovereign debt crisis politicians are struggling to fix. As ECB president, he will be the second most powerful central banker in the world after Federal Reserve Chairman Ben S. Bernanke, and a key figure in the struggle to restore investor confidence in Europe’s monetary union. “This will be a baptism of fire for Draghi,” said Nick Kounis, head of macro research at ABN Amro Bank NV in Amsterdam. “It is challenging to be ECB president in any environment, let alone in the midst of a serious crisis.”
Japan intervenes to tame yen ahead of G20 - (www.reuters.com)
Draghi Takes ECB Helm in Battle Mode as Debt Crisis Torments Policy Makers - (www.bloomberg.com)
China Won’t Get Extra Incentives for EFSF Help, Guaino Says - (www.bloomberg.com)
Draghi over-interpreted on bond buys, says Trichet - (www.reuters.com
Europe Seeking Crisis-Fighting Funds Faces Resistance Before Cannes G-20 - (www.bloomberg.com)
China to ‘Firmly’ Maintain Property Curbs: Wen - (www.bloomberg.com)
Berlusconi Defiant as EU’s Focus Shifts to Italy - (www.bloomberg.com)
Euro area growth to slow sharply; debt crisis key: OECD - (www.reuters.com)
Eurozone inflation remains above target at 3 percent in October - (www.washingtonpost.com
Chicago Purchasing Managers Index Dips - (www.bloomberg.com)
MF Global Faces Pivotal Days as Firm Mulls Sale - (www.bloomberg.com)
Commentary says China not a "savior" for Europe - (www.reuters.com)
Fukushima Plant Released Record Amount of Radiation Into Sea - (www.bloomberg.com)
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