MF Global's brokerage unit laid off all of its employees - effective immediately - except for a skeleton staff.  On this "Black Friday" - 11/11/11 - 1,066 jobs were terminated.  The employees were notified in town hall meeting at the New York and Chicago offices. According to James Giddens, the court-appointed trustee in charge of liquidating the unit, said 150 - 200 employees would be rehired to help with winding down the business and processing bankruptcy claims.  The rehired employees will include some who left the firm before Friday.

Payouts. Those terminated will be paid through 11/15 - a 4-day bonus - but will not be paid severance.  Insurance will be covered only until the end of November.

"The termination of employees and closure of operations is a necessary part of the court-ordered liquidation ... and is consistent with the trustee's obligations." -- James Giddens.

Giddens also said that his team is working to clear out the brokerage's New York offices as soon as possible and rent smaller, less expensive space as the liquidation moves forward.  MF Global's Chicago offices will continue to be leased for an undetermined amount of time, he said. Meanwhile, the CFTC has begun a formal probe into the collapse of the brokerage once run by Jon Corzine.  The firm's bad bets on European debt triggered a crisis of confidence in one of the most active commodity brokers in the world.  The CFTC investigation follows the discovery that about $593 million was missing from segregated accounts - customer funds that are meant to be held separate from the broker's own money.   [Reuters 11/11/11]