US stock futures fall on worries about US broker

By MATTHEW CRAFT | October 31, 2011 | 8:25 AM EDT

In this Oct. 27, 2011 photo, specialist Jennifer Klesaris (right) works at her post on the floor of the New York Stock Exchange. Global stocks gave up some of their recent gains Monday, Oct. 31, amid concerns over Italy's ability to get a handle on its colossal debt pile, while the yen slid in the wake of another attempt by the Japanese monetary authorities to weaken the currency.(AP Photo/Richard Drew)

NEW YORK (AP) — U.S. stock futures are lower on worries about the broker MF Global and about Italy's ability to repay its debts.

Bank stocks dropped sharply in premarket trading after the New York Federal Reserve said it suspended MF Global Holdings from conducting new business as a Treasury bond dealer.

Trading in MF Global shares was halted in premarket trading.

The Wall Street Journal reported Monday that MF Global would seek Chapter 11 bankruptcy protection after large investments in sovereign bonds issued by European countries went against it.

Before the opening bell, Dow Jones industrial average futures are down 106 points, or 1 percent, at 12,062. S&P 500 index futures are down 14, or 1.1 percent, at 1,266. Nasdaq 100 futures are down 23, or 1 percent, at 2,374.