MF Global Holdings Said to Be Subject of FBI Investigation

MF Global Holdings Ltd., which filed for bankruptcy protection six days ago, is the subject of a formal FBI investigation opened late in the past week, a person familiar with the matter said.

The inquiry, in which Federal Bureau of Investigation agents are working with U.S. prosecutors, is in its preliminary stage, and no information requests had been issued as of the afternoon of Nov. 4, said the person, who declined to be identified because the matter isn’t public. The decision to begin the probe was made that day or late Nov. 3, the person said, adding that reports of an earlier investigation were wrong.