Former NJ Governor Jon Corzine was a disaster for that state. He increased taxes and government spending, and rewarded unions with fat contracts while he burdened the state with debt. The voters had enough of his failure and voted him in out in 2009. Corzine then went back to his Goldman Sachs roots. He joined MF Global. The result was the same as his governorship. Jon Corzine drove MF Global into the ground.
Jon Corzine may not be the wild risk taking trader that some media accounts portray, but the downfall of MF Global can be laid squarely upon his shoulders.
Corzine reshaped the trading operations of MF Global, hiring thousands of new employees while laying off long-termers. And he made the transformation in a short period of time. The model he was trying to impose, very clearly, was Goldman Sachs of the 1990 and early 2000s. And during that time traders often operated as if the firm was just a big hedge fund.
But Corzine’s weakness was not an undue appetite for risk. He wasn’t a guy who looked for the riskiest tranches of debt or got his thrill with long odds.
His weakness seems to be something more like overconfidence. In his head he holds something that is almost the opposite of the efficient capital market hypothesis. It’s what one former co-worker called the “efficient Corzine hypothesis.”
Read the rest: Jon Corzine’s Overconfidence and MF Global Demise
It’s ironic that John Corzine did what Leftists complain about. He got rid of workers to lower costs. The worst part is that he eliminated experience workers and brought in new ones. That’s a way to reduce salaries. Hence he saves money but had inexperience workers. The result was the MF Global going under.
Jon Corzine is a failure at government and private sector. Progressives are failures in life.
Tags: Jon Corzine, MF Global, new jersey
