Corzine lived up to risk-taking reputation

Nov 3, 2011

In his 24-year career at Goldman Sachs, Jon Corzine made a name for himself as an intrepid trader who pushed the limits of risk. So it makes sense that when Corzine, after almost a decade as a U.S. senator and governor, was named chairman and chief executive officer of MF Global Holdings in March 2010, his plan for expanding the futures and commodities trader involved taking more risk. Less than 20 months later, the company is bankrupt, days after posting a $192 million quarterly loss and disclosing $6.3 billion in bets on European government bonds. Hans Stoll, Walker Professor of Finance and director of the Financial Markets Research Center at Vanderbilt, is quoted here and in a related story for Bloomberg: MF may have transferred customer money after audit, CME says.