Shares of MF Global Ltd. were down about 65% to close at $6.05 today amid fears the New York futures broker had problems accessing financing through repurchase, or repo, agreements with other financial counterparties.
The stock struggled to recover from an early drop of 79% to a session low of $3.64. The stock, which had closed at $17.32 on Friday, had set a 52-week high of $32.20 on Dec. 12, 2007.
The company is very well capitalized with $1.4 billion in a committed, undrawn credit facility, MF Global said in a statement.
Joe Lewis is not a client of MF Global, the firm also said in its statement, dispelling rumors the British investor who just lost most of his $1.8 billion investment in Bear Stearns Cos. might be unable to meet positions.
MF Global last month said it lost $141 million because of unauthorized transactions by a wheat trader.