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View Full Version : Another new villain: Jon Corzine.



cleller
11/1/2011, 11:48 AM
Didn't know much about Jon Corzine until reading up on how his actions are sparking even more turmoil in the financial markets.

During the 90's he was a co-chairman at Goldman Sachs. When Goldman went public, he made $400 million. He left, or was forced out, and ran for Senate, as a Democrat. He served one term in the Senate, then two terms as the governor of New Jersey.

Lately he has worked for a firm called MF Global. There, he made big, leveraged bets on European debt. The company was leveraged 40 to 1, meaning they had debt of 40 dollars to every 1 of equity. With his bets imploding, he was trying to sell off the company over the weekend, with no takers. Monday they declared bankruptcy. Had he been able to sell the firm, he'd have been guaranteed $12 million severance.

It also appears hundreds of millions of dollars are missing from the firm.

Midtowner
11/1/2011, 12:16 PM
We need more deregulation. That would ensure that this sort of job killing would stop. Instantly.

/sarc

BU BEAR
11/1/2011, 12:34 PM
We need more deregulation. That would ensure that this sort of job killing would stop. Instantly.

/sarc

The other side of the coin is that (1) all the burdensome regulation currently in place could not stop the bad result and (2) additional regulation might possibly address the last failure, but never the next.

TheHumanAlphabet
11/1/2011, 12:39 PM
Democrat cozy with O'bummer...hmmmm...

Midtowner
11/1/2011, 12:53 PM
The other side of the coin is that (1) all the burdensome regulation currently in place could not stop the bad result and (2) additional regulation might possibly address the last failure, but never the next.

Actually, in this case, in all seriousness, regulation appears to have been largely irrelevant. They made a huge investment, it looked like crap, and then they doubled down. I have a feeling Corzine will get a nice mid-high level executive job at another investment firm.

SoonerTerry
11/1/2011, 12:59 PM
you can't regulate stupid

cleller
11/1/2011, 01:45 PM
Part of the deal with MF Global I think was the fact that Corzine was a big name, and had no oversight. Some of the stuff I read related that deals this highly leveraged (not covered by assets) could never have gone on at Goldman. Ironic.

Problem is, how do you spot a rogue? Obviously a scrupulous trader would not go out on such a limb. Corzine was apparently betting that the work going on to stabilize the financial crisis in Europe would work out, and his bets would pay off. When that hit a snag, folks got nervous and wanted their money back, and the bottom dropped out. Had things worked out differently, it might all have worked.

To a guy with hundreds of millions, the downside of risk is not so immediate, its we poor, stuck in the 80s Republicans that are watching our retirement funds get whipsawed by these markets. Snark:hypnotysed:

JohnnyMack
11/1/2011, 01:46 PM
More regulation or less regulation isn't the right answer, it's enforcing the regulation that exists. As long as the state and federal enforcement agencies don't have the balls to go after the perpetrators of these antics, nothing is going to change. The problem is that these large investment banks are planting their people on the inside of these state and federal agencies, ensuring that very little will be done to change the status quo. Oh sure you'll see the occasional slap on the wrist as a fine is levied or a sacrificial lamb will be brought before the courts every year or so (see: Rajat Gupta), but by and large these firms act with impunity. They're just oversized organized crime at this point. Instead of handing their alderman an envelope filled with cash to make sure the local police look the other way, they create Super PAC's that hand over obscene amounts of cash to ensure that they maintain control.

TheHumanAlphabet
11/1/2011, 02:53 PM
I agree with that^^^

cleller
11/1/2011, 03:47 PM
These types are a different animal. If I hauled in $400 million, I'd bail out and live large forever. Not these guys, they have to have more. The only way I can figure it is that whatever drives them to be so rich and successful just never stops.

BU BEAR
11/1/2011, 05:08 PM
These types are a different animal. If I hauled in $400 million, I'd bail out and live large forever. Not these guys, they have to have more. The only way I can figure it is that whatever drives them to be so rich and successful just never stops.

At some point, I think they cease playing for money and start playing for influence and/or raw power.

Sooner5030
11/1/2011, 06:58 PM
we already have regulations that prevent these types of financial firms from mixing clients' investment $ with the firms short term payable needs.

We also already have regulations galore that require the ratings agency to attest to the investment grade of the senior debt of MF.

Based on the size and amount of debt and stakeholders we already require audited financial statements from an independent firm so that stakeholders are warned in advanced of going concern issues.

The problem is not regulation but folks not being in compliance with regulation.

Breadburner
11/1/2011, 10:45 PM
He learned it in Chicago.....

XingTheRubicon
11/2/2011, 10:45 AM
how many yachts can you water ski behind

soonercruiser
11/2/2011, 11:26 AM
Anybody notice what little time THIS CORZINE STORY is getting in the Drive-By Media????
:stupid:

TheHumanAlphabet
11/2/2011, 12:03 PM
He learned it in Chicago.....

Was he O'Bummer's neighbor that sold him property at extremely low prices?

soonercoop1
11/2/2011, 05:31 PM
He's another that should be at the very least be in prison...

diverdog
11/2/2011, 10:54 PM
Anybody notice what little time THIS CORZINE STORY is getting in the Drive-By Media????
:stupid:

FYI cruiser this story was on the front page of the NY Times, The WSJ, and in the business section of the Chicago Tribune, Washington Post and USAToday.

AlboSooner
11/2/2011, 11:58 PM
FYI cruiser this story was on the front page of the NY Times, The WSJ, and in the business section of the Chicago Tribune, Washington Post and USAToday.

Yes, but reading is for libtards. See how I combined two otherwise unfunny words, liberal, and retard to convey the idea that liberals are retards, that's very funny, right? Libtards. lol.

Midtowner
11/3/2011, 02:17 PM
Anybody notice what little time THIS CORZINE STORY is getting in the Drive-By Media????
:stupid:

It's getting a lot of attention.

It's been a major topic on NPR for the last several days while they discuss the implications for the world economy of a Greek default.

--but I'm guessing you don't listen to a lot of NPR.

Sooner5030
11/3/2011, 04:54 PM
the dude (or dude's firm) allegedly broke the law or industry standards. Choosing to break the law has nothing to do with ideology or party affiliation. Just like choosing to sleep around (or other personal events) is not ideology/party specific. The only reason it's talked about is because it may score points for one side or the other.

SicEmBaylor
11/3/2011, 05:13 PM
How is John Corzine a new villan? He has been a problem for more than a decade.

BU BEAR
11/3/2011, 05:18 PM
the dude (or dude's firm) allegedly broke the law or industry standards. Choosing to break the law has nothing to do with ideology or party affiliation. Just like choosing to sleep around (or other personal events) is not ideology/party specific. The only reason it's talked about is because it may score points for one side or the other.

How about driving a girl off a bridge after you sleep with her? Is that party specific or no?

sappstuf
11/4/2011, 12:00 PM
We are the 1%!!!

http://thejerseybackup.com/wp-content/uploads/2009/07/obama-corzine-229x300.jpg

diverdog
11/9/2011, 06:40 PM
Sapp:

I just found out that my company is going to handle this bankruptcy along with Chase and JP Morgan.

Serge Ibaka
11/9/2011, 07:55 PM
How about driving a girl off a bridge after you sleep with her? Is that party specific or no?

I'm pretty sure that that's literally a Democratic platform, actually. Good call.

BU BEAR
11/10/2011, 12:49 PM
I'm pretty sure that that's literally a Democratic platform, actually. Good call.

I knew you would be in favor. He was your hero; his brain was pickled just like yours.