MF Global slumps 47% on unexpected loss

From "Financial Times"

Shares in MF Global, the broker-dealer run by former Goldman Sachs chief executive Jon Corzine, dived by almost half on Tuesday, after the company reported an unexpected second-quarter loss and on worries its debt could be downgraded to “junk” status.

MF Global had brought forward its earnings by two days, after Moody’s on Monday night downgraded its long-term debt from Baa2 to Baa3 and said it was considering a further downgrade, which would give the company a non-investment grade rating. The rating agency said it was worried about MF Global’s earnings power, leverage and risk management – the latter because of exposure to European sovereign debt.

MF Global slumps 47% on unexpected loss

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