As you may have heard, things have not been going so hot for MF Global lately (though CEO Jon Corzine would beg to differ, saying yesterday on an internal call that "things are fine, pretty much"). The brokerage firm reported its biggest quarterly loss ever this earlier this week, Moody's cut its rating to one step above junk on Monday, and Fitch, not wanting to feel left out of the gang bang, downgraded the company to BB+ from BBB, as well as placing it on Rating Watch Negative. Supposedly, the wheels really started to come off when Corzine began actively realizing his dream of refashioning MF-G in the likeness of his former employer but now is not the time for pointing fingers- now is the time for working the phones and selling off (part) of this bitch.
MF Global Holdings Inc. is seeking a buyer for its futures brokerage unit and is looking to strike a deal within days, said two people with knowledge of the matter. MF Global has been contacting large banks already in the futures business, said the people, who spoke on condition of anonymity because the talks are private. Under the plan being discussed, the New York-based company’s holding company and other businesses wouldn’t be included in the sale, the people said.
So far, at least one analyst would love to see Goldman profit off the situation but if anyone else would like a piece of this, please do speak up. In related news, Hank Paulson is said to have been pulling up to his Bloomberg the last few days to watch the action first hand. The birds can wait! He hasn't laughed this hard since the time Ken Lewis thought he was joking when he threatened to break Ken Lewis's legs in 8 different places if BofA didn't buy Merrill Lynch.
MF Global Weighs Its Sale [WSJ]
MF Said to Seek Buyer Within Days for Futures Business [BW]
MF Global bonds rally on hopes of a deal [Reuters]
MF Said to Seek Buyer for Futures Brokerage Unit [Bloomberg]