To read a recounting of Corzine’s tenure at MF Global Holdings is to wonder how he missed the 2008 financial crisis. Oh, yes! That’s right: he was the governor of New Jersey, a job he won in 2005 after one term in the Senate. Still, you would think that as a former Wall Street titan, he would have noticed that taking giant bets on shaky, long-term bonds while financing your operations with overnight loans that can be pulled at any second is not exactly a recipe for success.Jeenyus!
But that’s exactly what Corzine did. After taking over the firm in March 2010 — just months after losing his re-election bid to Chris Christie — he decided to transform the derivatives broker into something sexier, something more like his old firm, Goldman Sachs. In particular, he wanted MF Global to risk its own capital, trading for its own account, just like Goldman had so successfully done when he was running it.
Stunningly, the risky bets he took at MF Global were on European sovereign debt.
Wednesday, November 2, 2011
Jon Corzine, foe of income inequality
Apparently he's trying to level the playing field by bankrupting his investors.