With MF Global (MFG) recently disclosing more details on its bankruptcy and liquidation, let’s quickly review the financial debacle that came to fruition under former New Jersey governor, former U.S. senator, and former Goldman Sachs chairman, Jon Corzine. Moreover, let’s relate it to the current debacle in Cyprus. There are some quite troubling similarities. MFG was a small commodity broker, a marginal operation by many standards or metrics; then along came Jon Corzine. He was looking for a new opportunity to make more money than he already had—which was substantial to begin with. So he was offered a chance to expand the MFG business model by setting up an in-house, proprietary securities trading operation. More on Forbes here.
