It seems as though the debt crisis in the eurozone has far reaching tentacles that have impacted everyone from individuals to corporations to governments around the world. After bad investments in the eurozone debt crisis, MF Global filed bankruptcy and liquidators are now winding down the multinational brokerage.
In the United States alone more than 1,000 workers were fired, some of which may be rehired to assist with winding down. It is estimated that perhaps 200 of those fired will be called upon during this period. The company filed bankruptcy a couple of weeks ago after a bad investment on EU government debt that virtually destroyed confidence in the global markets.
Now all eyes are turning towards the UK where MF Global employs approximately 725 workers. It is estimated that almost half those will be made redundant; the number is thought to be about 350 who will get notice in the coming days. These workers will be let go at some point by the end of November.
The liquidator is coming under fire for the way in which they are handling the bankruptcy administration. KPMG is the first special administrator to have been appointed by the FSA with their newly acquired powers.
Although these efforts are meant to hasten the proceedings, UK clients are afraid they will not have access to the money that was supposedly held in something called ‘segregated funds.’ Other multinational groups are also scaling back in an effort to stay afloat which will further add to the numbers of unemployed in the UK as well as elsewhere around the world.