Friday, November 4, 2011

MF Global, Jon Corzine and $12 Million Golden Parachute

Yesterday, in response to commentary from friends, I asked, almost rhetorically at the time since the severance had been reported, "how could Corzine take a $12-million severance when MF Global was in bankruptcy?? I speculated that it could have been granted before the filing for Chapter 11 (with high risk!). By the end of the day, the FBI was said to be investigating which makes it legitimate to infer criminal behavior expected. Up to $700 million of customer money is missing in addition to the "corporate" losses from highly improper Corzine-directed trades in European sovereign debt vehicles

If he took the severance, in all likelihood it would be disgorged by the court or "clawed back."

Well, well, today we hear that he refused the severance.  Really! This explanation is hardly palatable. Seems someone wised up and/or got frightened.

Corzine ran Goldman Sachs as a government trough feeder and influence peddler of highest order. As governor, he bankrupted New Jersey. He operates on the edge as his 90-mph SUV accident with no seat belt racing for an appointment and his disdain for advice in governing NJ attest to.

Why is this important enough to write about? It is a prime example of the corruption in the financial industry.....the very industry that now runs the US economy. It is but one reason, but a major one, that our economy cannot recover to the level that many, perhaps most, tout...... or at least hope for.

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