Report: Corzine investment firm to file for bankruptcy

TRENTON – Former Democratic Gov. Jon Corzine’s investment firm, MF Global Holdings, is preparing to file for bankruptcy, according to a report in the New York Times.

The Federal Reserve Bank of New York sent out a statement saying it had suspended doing any business with MF Global until the firm “is fully capable of discharging the responsibilities set out in the New York Fed’s policy.”

Various experts and officials attributed the firm’s downfall to the European debt crisis.

The firm had last week hired restructuring and bankruptcy law firms including Skadden, Arps, Slate, Meagher & Flom, said people briefed on the matter but unauthorized to speak publicly.

Despite the firm’s difficulties, the report said Corzine, 64, who formerly headed the powerhouse investment firm Goldman Sachs, is expected to receive a severance payment of nearly $12.1 million.

Report: Corzine investment firm to file for bankruptcy