MF Global’s American operation will lay off the rest of its 212 employees by the end of the year, according to a New York labour Department WARN notice. [via WSJ]
After firing over 1,000 employees from the US brokerage unit, MF Global trustee James Giddens retained around 200 workers to help wind down the operations. It looks like that job may be done by year’s end, if employees are getting their final pink slip now.
But, bear in mind that these workers were also being retained to help search for the shortfall in client funds—last estimated to be around $1 billion, though no one knows the exact amount anymore—so who will be around to answer questions and help regulators in the search?
Judging from the comments that have been made on the state of MF Global’s messy books and the near-negligible progress on the hunt for the client funds, it’s very doubtful that the money will be found by year’s end. Is the trustee admitting defeat?