Corzine Leads His Brokerage Firm off a Cliff – The Top 10 Everything of 2011 – TIME

This one is for HR: a shiny resume may mean nothing! Past positions and job titles do not mean qualification. Corzine may just be the one merely keeping his mouth moving when others at Goldman Sachs were truly singing. But the truth always comes up at critical moments. 

When Jon Corzine, the recently deposed governor of New Jersey and former head of Goldman Sachs, took the top job at little known brokerage firm MF Global in 2010, many thought the position was beneath the well-known financier. Apparently, it was just the opposite. In late October, MF Global filed for bankruptcy. What’s more, Corzine looks to be directly responsible for the firm’s demise. Corzine pushed the firm to make an $11.5 billion bet on European bonds, much of it with borrowed money. As the Euro crisis intensified this autumn, the value of the bonds dropped, prompting MF’s lenders to demand more money to cover its failing bets, which eventually wiped the firm out. Worse, MF may have tried to cover some of the cash crunch using client money. Over $1 billion is missing from customer accounts. The FBI is reportedly investigating.

via Corzine Leads His Brokerage Firm off a Cliff – The Top 10 Everything of 2011 – TIME.

This entry was posted in Teaching cases. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s