Jon Corzine
Oct. 31 (Bloomberg) — MF Global Holdings Ltd., the company run by Jon Corzine that last week reported a record loss, had two of its credit ratings cut to junk and drained bank lines, faces a pivotal few days as the futures broker pitches itself to potential buyers to avert failure. [1]
When it was first announced in March 2010 that former New Jersey Governor and Goldman Sachs chief Jon Corzine was joining MF Global, the general feeling was that the Wall Street outfit specializing in options and futures was lucky to have him. [2]
Jon Corzine may not be the wild risk taking trader that some media accounts portray, but the downfall of MF Global can be laid squarely upon his shoulders. [3]
MF Global’s stock cratered for a third straight day as Wall Street grew skeptical that CEO Jon Corzine would be able to lure a white knight to save the embattled broker-dealer. [4]
Jon Corzine, the former Goldman Sachs CEO and ex-governor of New Jersey, took the helm at MF Global last year, and he started making large bets on debt issued by European countries. [5]
Corzine could not be reached for comment and MF Global declined comment. [6]
Fitch’s downgrade comes 24 hours after S&P threatened to take similar action and three days after Moody’s Investors Services cut the firm one notch to just above junk, to Baa3. [4]
The law firm currently represents Lehman Brothers Holdings Inc., which in 2008 filed the biggest bankruptcy in U.S. history. [1]
The trading, particularly in debt from troubled euro zone nations in the past year, has instead driven the firm to the brink of collapse, making it possibly the most prominent U.S. casualty yet from the euro zone crisis. [6]
VShift was fortunate to be one of the first consultants to join the Corzine campaign for Governor in 2009. [7]
Jon Stevens Corzine (born January 1, 1947) is the former CEO of Goldman Sachs and a one time American politician, who served as the 54th Governor of New Jersey from 2006 to 2010. [8]
They point to Goldman Sachs’ major trading losses under his watch in 1994, or when he sustained serious injuries in 2007 as a passenger in a speeding sports utility vehicle while not wearing a seatbelt. [6]
One trader at the firm pointed out that this portfolio doesn’t contain much of the riskiest sovereign borrower in Europe’Greece. [3]
MF Global was in discussions with five potential buyers for all or parts of the company, including banks, private-equity firms and brokers, said the person, who asked not to be identified because the talks are private. [1]
Moody’s Investors Service cut MF Global’s debt on Monday, pointing to the firm’s European debt exposure. [2]
Sources:
[1] Corzine’s MF Global Suspended From Trading With New York Fed …
[2] The Jon Corzine Disaster - Forbes
[3] Jon Corzine’s Overconfidence and MF Global Demise - US Business …
[4] Corzine can’t broker deal for MF - NYPOST.com
[5] How Jon Corzine’s Trades Imperiled MF Global - Deal Journal - WSJ
[6] Insight: Did Corzine’s risk taking cripple MF Global? - Yahoo! News
[7] Projects - VShift
[8] Jon Corzine - Wikipedia, the free encyclopedia