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.

Earlier, The Wall Street Journal reported Interactive Brokers (NasdaqGS: IBKR) could purchase MF Global’s assets following a bankruptcy filing.

MF Global has been under pressure recently due to ratings downgrades, weak results, exposure to European sovereign debt and high leverage, Deutsche Bank analysts said in a recent note.

Financial Select Sector SPDR

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