How Former Goldman CEO And NJ Governor Jon Corzine Ran MF Global Into The Ground

• New York Fed suspends operations with MF Global
• MF Global declares bankruptcy

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You gotta love this story as it proves that despite being CEO of Goldman Sachs (before Hank Paulson discharged him in a bloodless vacation coup) and a former Governor of New Jersey, Jon Corzine was at his core a herd following lemming, or simply an idiot, whichever you prefer.

Corzine has been running MF Global, a publicly traded investment firm since he lost the Governor's race to Chris Christie a few years ago.  Now, as MF Global spins in its final death spiral, awaiting bankruptcy, Bloomberg reveals the source of the trouble:

Corzine increased the firm’s risk and used its own money to trade, including investments in European sovereign debt. Corzine began adding sovereign debt of Italy, Spain, Belgium, Portugal and Ireland about a year ago, according to a company presentation.  The positions accounted for 16 percent and 12 percent of net revenue in the quarters ended in March and June, the firm said.

MF Global, which had a market value yesterday of $280.3 million, holds $6.3 billion of sovereign debt that it’s using in repurchase agreement trades with customers.  MF Global reported its worst-ever quarterly results on Oct. 25, losing $191.6 million in the three months ended in September.

So a year ago, when a 3rd-grader could have told you that the European bailout mess was just getting started, Corzine thought the coast was clear and started buying sovereign debt of the most bankrupt of all Euro nations.  Bwahahaha.  I love my job sometimes.

No doubt, Corzine will emerge from the bankruptcy intact and wind up at another hedge fund like the thrice-failed John Meriweather of Solomon Brothers and LTCM.  Who cares, for now we laugh and dance on the grave of Corzine and MF Global.

Dumbass.

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Related story:

• Jon Corzine Is A Criminal And Chris Christie Proves It

Update on Oct 31, 2011 at 11:13 AM by DailyBail

Updated.

Comments

[Dr. Pitchfork]

http://www.youtube.com/watch?v=rX7wtNOkuHo

[DailyBail]

Nice one, Dr. P.

Here's more on Corzine's mistake:

http://www.bloomberg.com/news/2011-10-27/corzine-copying-goldman-sachs-at-mf-sends-stock-down-54-as-bet-backfires.html

[tom dee]

My property taxes double during Johns time as governor. Many might argue that it was not his fault but I would like to point out that 1/3 my property tax now goes to the education of a child not legally in the USA. Yes I believe the governor as head of the administrative and police power of the state should at least do something but being John he has no interest in the people. He is going to get paid $6,000,000 no matter what happens. The people are on the street and they are protesting people like good old John who was on the business news very recently telling us that everything look good. He is either uninformed individual or he lied about the damage the irc did to the titanic. Play on bang members you have nothing to worry about.

I also do not feel like paying for the education of some child who has no legal right to be in my state. I feel that no citizenship should now be given to anyone who is not a veteran. We have a lot of people and doing a tour in support of the nation would lead me to believe they want to be in the country. Illegals serving would have the federal government to provide for the education of any children of those in the service. During the Vietnam war they would not draft Fathers at first to keep the cost down. So we have done the exact same thing before.

[john]

If this is true....

Claim: Clinton Collected $50K Per Month From MF Global
Former president's new firm Teneo Strategy was hired to boost Corzine.

http://www.humanevents.com/article.php?id=47938

[john]

A must read from Karl Denninger.


Let's Make The Clawback Risk REAL

http://market-ticker.org/akcs-www?post=198650

excerpt:

One of the forum members pointed out something that was obvious to me when I wrote this morning's Ticker, but might have gone over your head.

I want to make absolutely sure it doesn't go over your head because if you're wrong about this you could lose everything in your bank and investment accounts -- every single dime.

FDIC / SIPC insured or not.

Recently Bank of America transferred a bunch of derivatives into their banking arm. "A bunch" means somewhere around $80 trillion worth.

Now pay very careful attention, because part of the bankruptcy "reform" law in 2005 placed derivative claims in front of depositors in a business failure - including a bank failure.

What JP Morgan is claiming in the MF Global case is that the derivative trade (which is exactly what a "Repo to Maturity" trade is - it's a derivative) is entitled to preference in the case of MF Global over those who had cash there for safekeeping either as a margin deposit or just as free cash as you would hold free cash in a bank.

If a major bank blows up this very same claim, supported in existing Bankruptcy Law with the changes signed by George Bush in 2005, will be used to steal the entirety of your bank account, and if you detect the impending blowup shortly before it happens -- say, 90 days before -- you're still exposed to the risk through clawback!

[john]

Let's Make The Clawback Risk REAL

http://market-ticker.org/akcs-www?post=198650



One of the forum members pointed out something that was obvious to me when I wrote this morning's Ticker, but might have gone over your head.

I want to make absolutely sure it doesn't go over your head because if you're wrong about this you could lose everything in your bank and investment accounts -- every single dime.

FDIC / SIPC insured or not.

Recently Bank of America transferred a bunch of derivatives into their banking arm. "A bunch" means somewhere around $80 trillion worth.

Now pay very careful attention, because part of the bankruptcy "reform" law in 2005 placed derivative claims in front of depositors in a business failure - including a bank failure.

What JP Morgan is claiming in the MF Global case is that the derivative trade (which is exactly what a "Repo to Maturity" trade is - it's a derivative) is entitled to preference in the case of MF Global over those who had cash there for safekeeping either as a margin deposit or just as free cash as you would hold free cash in a bank.

If a major bank blows up this very same claim, supported in existing Bankruptcy Law with the changes signed by George Bush in 2005, will be used to steal the entirety of your bank account, and if you detect the impending blowup shortly before it happens -- say, 90 days before -- you're still exposed to the risk through clawback!