Crash Corzine & His Demolition of MFGlobal

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Robin: A giant cake of foam rubber! What are the chances?

Batman: I’d say the odds against it would make even the most reckless gambler cringe!

~ Batman the Movie 1966

New Jersey gambler, once of Goldman Sachs, formerly the Governor of said state, has stepped down by demand, from MF Global Holdings for his reckless bets on the European debt, which drove the futures brokerage into bankruptcy.

Interestingly, $633 million dollars of customer’s money is missing. However, Bloomberg News reported Friday that $685.8 million in missing MF Global customer money had been located in an account at JP Morgan Chase & Co.

If that report is true, the story of Corzine’s fall from grace at MF Global, which he wanted to transform from a broker specializing in commodities and other futures contracts into a diversified Wall Street investment bank, is a relatively simple though catastrophic case of a complicated gamble that blew up in his face.

Corzine violated Federal financial rules. The company’s collapse shed light on how Mr. Corzine had used his significant clout in Washington to personally lobby — successfully — against a proposed rule that would have restricted a complicated transaction that allowed MF Global in essence to borrow money from its own customers.

Corzine had close ties to the regulator.

After running New Jersey into the ground with risky administrative practices and wild spending, he went on to destroy MF Global.

I hear Corzine is going 95 miles an hour right now down the NJ turnpike, heading for Newark to catch the next plane to Brazil (remember his crazy driving as Governor?).

Read here: Corzine’s ego and ambition

 

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