Bloomberg News

MF Global Fired 15 Japan Workers Before Bankruptcy, Union Says

November 01, 2011

(For more news on MF Global, see {EXT3 <GO>}.)

Nov. 1 (Bloomberg) -- MF Global Holdings Ltd. fired 15 employees from its Japan unit before filing for bankruptcy yesterday, said Kazuyuki Sugimoto, secretary general at the Federation of Foreign Bank Employees Union.

The analysts, traders and sales staff had their employment contracts terminated, Sugimoto said in a telephone interview in Tokyo today. Workers from the New York-based securities firm’s Japan unit joined the federation in September, he said.

“We are not able to comment on this,” Clara Goh, MF Global’s Singapore-based spokeswoman for Asia Pacific, wrote in an e-mailed reply to inquiries about the dismissals from Bloomberg News.

The Japanese unit, MF Global FXA Securities Ltd., has 53 employees, according to the Financial Services Agency. The FSA issued an order protecting the assets of the unit and instructed the firm to improve its business, it said in a statement today.

MF Global, the holding company for the broker-dealer run by former Goldman Sachs Group Inc. co-chairman Jon Corzine, listed debt of $39.7 billion and assets of $41 billion in Chapter 11 papers filed yesterday to the U.S. Bankruptcy Court.

The impact of the company’s collapse on Japan’s financial system will be negligible, Financial Services Minister Shozaburo Jimi told reporters in Tokyo. MF Global FXA Securities has capital of 935 million yen ($12 million), the FSA statement said.

Of the 15 dismissed workers, 14 were based in Tokyo and one worked in Singapore, Sugimoto said.

--With assistance from Shigeru Sato and Shingo Kawamoto in Tokyo and Stephanie Tong in Hong Kong. Editors: Russell Ward, James Gunsalus

To contact the reporter on this story: Takahiko Hyuga in Tokyo at thyuga@bloomberg.net

To contact the editor responsible for this story: Chitra Somayaji at csomayaji@bloomberg.net


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