In a bankruptcy, unsecured creditors get repaid after secured lenders. According to MF Global's bankruptcy filing, some of the firm's biggest unsecured lenders include: JP Morgan Chase (JPM), a bondholder trustee with a claim of approximately $1.2 billion; Deutsche Bank AG (DB), a trustee with a claim of $1.02 billion in bonds; Headstrong Services LL with a claim of $3.9 million; and Comcast Corp. (CMCSA)'s CNBC with a claim of $845,397 (unpaid ad sales).
MF Global's star bankers
When Corzine took over as MF Global's CEO in March 2010, the firm was one of the few on Wall Street adding staff as banks worldwide announced hundreds of thousands of layoffs amid the financial crisis. Corzine, who helped run Goldman Sachs from 1994 to 1999, hired 800 employees in efforts to turn the broker-dealer into an investment bank.
As Bloomberg reports, recruits included: Michael Stockman, UBS AG's former chief risk officer for the Americas, Richard Moore, once Citigroup Inc (C)'s head of European fixed-income, and Jon Bass, also previously of UBS and a member of the investment bank's board.
It's anyone's guess where they might end up, but for now at least, many of them will likely join the millions already in the job market.
Jon Corzine himself
Corzine was widely viewed as attempting to revive his Wall Street career by taking the helm at MF Global. Coming off a stint in public service, the former Goldman Sachs CEO tried to makeover MF Global into something bigger by taking on risky trades. Whatever his intentions, the firm's meltdown seems to be testing his rep on Wall Street. Corzine had a long business relationship with Flowers, dating back to their days at Goldman decades ago. And up until recently, Corzine was an operating partner at Flowers private equity firm.
It remains to be seen if Corzine will be able to work his way back into the graces of Wall Street. And we know he won't end up poor, even if his $12 million severance payment is rescinded by the bankruptcy court. But for now, as federal regulators investigate hundreds of millions of dollars in customer money missing from MF Global in recent days, his reputation on the Street may be at stake.