It’s been a rough couple of years for Jon Corzine, and it looks like things are about to get worse:
Federal regulators have discovered that hundreds of millions of dollars in customer money has gone missing from MF Global in recent days, prompting an investigation into the brokerage firm, which is run by Jon S. Corzine, the former New Jersey governor, several people briefed on the matter said on Monday.
The recognition that money was missing scuttled at the 11th hour an agreement to sell a major part of MF Global to a rival brokerage firm. MF Global had staked its survival on completing the deal. Instead, the New York-based firm filed for bankruptcy on Monday.
Regulators are examining whether MF Global diverted some customer funds to support its own trades as the firm teetered on the brink of collapse.
As of right now, it looks to me that Corzine, another Goldman wonderboy, thought he was invulnerable:
Now, the inquiry threatens to tarnish further the reputation of Mr. Corzine, the former Goldman Sachs executive who had sought to revive his Wall Street career last year just a few months after being defeated for re-election as New Jersey’s governor.
When he arrived at MF Global — after more than a decade in politics, including serving as a Democratic United States senator from New Jersey — Mr. Corzine sought to bolster profits by increasing the number of bets the firm made using its own capital. It was a strategy born of his own experience at Goldman, where he rose through the ranks by building out the investment bank’s formidable United States government bond trading arm.
One of his hallmark traits, according to the 1999 book “Goldman Sachs: The Culture of Success,” by Lisa Endlich, was his willingness to tolerate losses if the theory behind the trades was well thought out.
So far, this reads to me like every out of control gambler in every two bit casino in the country- the losses are mounting, and instead of walking away from the table, going home and telling the wife that you spent the rent check, you mortgage the house and raid the kid’s college fund and double down because, as we all know, if these bets hit you will be in the clear! Be nice if my suspicions are wrong, but I really doubt it. That’s the mentality of these guys. They aren’t shrewd businessmen, they are reckless gamblers.