Updated with market close information.
NEW YORK (
was the loser on a weak Monday for the financial sector, with shares plunging 12% to close at $41.41, following
Trading for MF Global's shares was suspended as the company and its Global Finance units filed for chapter 11 bankruptcy according to a petition filed to the Federal Bankruptcy Court in New York.
According to the bankruptcy filings
, JPMorgan Chase
was MF Global's largest creditor, with $1.2 billion in exposure, followed by Deutsche Bank, with claims against the commodities and derivatives broker of over $1 billion.
JPMorgan's shares fell over 5% to close at $34.76.
An earlier deal for
to purchase MF Global fell apart, according to the Wall Street Journal. Interactive Brokers bucked the sector trend, with shares rising 1% to close at $15.38.
KBW Bank Index
dropped over 4% to close at 40.09, with all 24 index components showing declines in the wake of the MF Global filing and
Rumors surrounding the plans to leverage the Eurozone Financial Stability Fund also pressured other large European banking names, including BNP Paribas, which declined 10% to $32.85;
, which was also down 10% to $8.64, and
, which declined 9% to close at $12.62.
dropped 9% to close at $17.64, as the shares continued pulling back from Thursday's 17% pop.
Large banks seeing shares decline 8% on Monday included
, closing at $31.59, and
, which closed at $3.94.
Bank of America
declined 7% to close at $6.83.
Big U.S. banking names seeing 5% declines included
Bank of New York Mellon
, which closed at $21.28;
, at $5.18;
, at $109.55; and
, closing at $17.36.
Written by Philip van Doorn in Jupiter, Fla.
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Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.