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.