Exchange traded funds that invest in financial and bank stocks were lower by more than 2% Monday morning after MF Global (NYSE: MF) filed for Chapter 11 bankruptcy protection.

Financial Select Sector SPDR (NYSEArca: XLF) was down 2.4% at last check.

On Monday, the Federal Reserve Bank of New York said MF Global has been suspended from conducting new business with the New York Fed.

The chief executive of MF Global is John Corzine, previous Goldman Sachs (NYSE: GS) CEO and former governor of New Jersey.