Source: Chris Isidore / CNN Money
NEW YORK – The ax fell Friday for all 1,066 employees of bankrupt MF Global’s brokerage unit, the trustee overseeing the liquidation of the company announced.
While the terminations are effective immediately, the employees will be paid through Nov. 15 and will have health coverage through the end of the month, but they will not get severance.
MF Global (MFGLQ) has been prohibited from executing trades since filing for bankruptcy protection on Oct. 31. Federal regulators and other authorities are investigating a reported $633 million that is reported to be missing from its clients’ accounts.
MF Global’s holding company had about 2,900 employees at the end of the previous quarter, but the brokerage business that is being liquidated was the largest part of the business. The holding company is in a separate Chapter 11 bankruptcy proceeding that continues to operate during reorganization.
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