This is the reason regulations need to be FIXED!
They NEVER learn as long as it's not their money...
Corzine Copying Goldman at MF; Bet Backfires
By Matthew Leising - Oct 27, 2011 12:00 AM ET .
Jon Corzine, who won the top job at Goldman Sachs Group Inc. by leading the firm’s fixed-income unit, now says he’s responsible for trading decisions that have almost wiped out the stock-market value of his futures brokerage.
Since Corzine became chairman and chief executive officer of New York-based MF Global Holdings Ltd. in March 2010, he’s increased the firm’s risk and used its own money to trade, including investments in European sovereign debt that have tumbled in value. This week, the firm reported its biggest quarterly loss ever, Moody’s Investors Service cut its rating to one level above junk, shares plummeted 54 percent and 6.25 percent bonds issued in August fell into distressed levels.
“On a personal note, our positions and the judgment about risk-mediation steps are my personal responsibility and a prime focus of my attention,” the 64-year-old former New Jersey Democratic governor and U.S. senator said Oct. 25 on an earnings conference call with analysts.
MF Global, the former brokerage unit of London-based Man Group Plc that went public in July 2007, has hired Evercore Partners Inc. to advise it on a review of its business including a potential sale, according to a person familiar with the decision. Market perceptions may leave the firm in the same kind of position faced by banks during the financial crisis in 2007 and 2008, when credit dried up, said Fifth Third Asset Management’s Mitchell Stapley in Grand Rapids, Michigan
more at:
Bloomberg.com
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