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.

Comments

Post a Comment

Popular posts from this blog

AMERICAN AIRLINES -- MORE ABOUT UNIONS AND CH 11

I apologize for the structure of the post below, with no segmentation, but the system refuses to do it my way. To my post yesterday re AMR's chapter 11 filing relating my experiences over many years flying with AA, an AA pilot wrote a thoughtful comment that caused me to think a bit more about the precursors to conditions of their bankruptcy. Frankly, I have what is perhaps too much experience with trade unions and their excesses, but know less about others such as the airlines. After learning more about the negotiations of AA with their unions, I now think it's justifiable to post the comments below. I've seen too many industries destroyed by union excesses coupled with management incompetence in caving to excess demands. Start with coal (dead for many years), steel, textiles, shoes, electronics manufacturing, and more.  The Detroit 3 (once the big 3) deserves special mention. As their costs rose to $72/hour (fully loaded) and costs in the southern industry w...
Read more

LEFTIST MIND-SET OF TODAY -- REFLEXIVE, THOUGHTLESS SUPPORT FOR THE OBAMA ADMINISTRATION

"Trying to persuade a prejudiced mind is as Sisyphean as trying to open a closed mind is Quixotic." Mann, May 2012 In a blog post herein below on May 1, 2013, I outlined what we who manage people and enterprises know as absolutes about performances of people who are put into management and supervisory positions for which they haven't requisite qualifications. For those who have progressed through several jobs to their level of incompetence, this is known as the Peter Principle as defined by Laurence J. Peter. In all likelihood, all who have managed people for any length of time have seen this principle played out. While Peter's observation applies to progression through multiple job levels, if a person is put into any job for which he is unqualified, the concept is also valid. Elective political positions is where I see this most often played out. The election of Barack Obama as President of the United States is the most significant example of this in my lif...
Read more

ETHANOL -- The worst mandate ever gets even worse

When politicians get control of science and the inept or dishonest scientists, nothing good comes of it. There are many examples -- global warming (aka climate change) is the most prominent. The ethanol mandate, although a part of the climate change mania, stands on its own as arguably the most ridiculous mandate of all time. President Jimmy Carter, who was influenced by a misguided college professor, can be charged with the mistake of promulgating the ethanol mandate.  Of course, Al Gore is the politician who played the global warming issue like a drum and has benefited financially from it. Use of ethanol in motor fuel is not a net positive either in costs or in impact on the environment.... enormous hype to the contrary notwithstanding. Ethanol does not have the positive effect on the environment as touted. It has only about 60% of the specific energy of petroleum fuel, which begs use of more fuel to achieve the same energy as petroleum fuel. And, so it does. I have my own exp...
Read more