Views on improving the integrity of global capital markets
09 December 2011

MF Global: What Jon Corzine Needs to Do

I can think of two things right off the bat: get a haircut and a clue. I, like many others, got to watch another Congressional show-trial this week as Jon Corzine made a not-so-triumphant return to the Hill. This time, not as a U.S. senator representing a major financial industry state, or as the former head honcho of Goldman Sachs, but as what appeared to be a confused and beaten man. 

I have to confess, I harbor some ill feelings as an MF Global account holder whose check is still “in the mail.” But don’t you think he could muster a better explanation than he isn’t sure where the money is, and that maybe the firm’s e-mail records will help find the funds.

Among the other revealing tidbits: 30-times leverage at his firm was not such a big deal. Nor did he intentionally (at least to his knowledge) — and based on the fact he has not seen any records — use client-segregated funds. 

The incredulity of all this defies comment, so I won’t. Suffice to say, it may stretch the bounds of veracity and reflects a remarkable lack of accountability for a company CEO. Maybe I am too harsh in my admittedly somewhat-biased judgment, but we need better people in finance if we hope to have any prayer of improving investor trust and confidence — even if we do find all of the client  money.

Let me know what you think.

About the Author(s)
Kurt Schacht, JD, CFA

Kurt Schacht, JD, CFA, is the Senior Head, Advocacy Advisor, Capital Markets Policy at CFA Institute, where he oversees advocacy efforts and the development, maintenance, and promotion of the highest ethical standards of practice for the global investment management industry.

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