[h=1]Corzine’s MF Global files for bankruptcy[/h] By MARK DeCAMBRE
Last Updated: 10:32 AM, October 31, 2011
Posted: 7:31 AM, October 31, 2011
Besieged broker MF Global filed bankruptcy today after a frantic effort over the weekend by CEO John Corzine to strike an out-of-bankruptcy came up short.
The embattled broker dealer run by the former New Jersey governor hoped to sell some of the company’s assets in a complicated transaction to rival Interactive Brokers Group, a move that must receive the blessing of a bankruptcy judge, according to people familiar the situation. But that deal fell apart.
The bankruptcy ended one of the most harrowing weekends on Wall Street since Lehman Brothers on Sept. 15, 2008 imploded on worries that it was choking on toxic mortgage debt.
Three years later, Corzine — a former Goldman Sachs CEO — was pounding the phones this past weekend in an attempt to secure a white knight to purchase all or parts of MF Global after concerns about the broker-dealer’s exposures to some $6.3 billion in European sovereign debt decimated its shares in a wild week off trader for the firm that saw it lose three-quarters of its equity value.
For Corzine, 64, a bankruptcy would be another knock on his reputation after choosing to dial up European risk at MF Global when other larger firms had grown weary.
Corzine is not expected to stay on at MF Global — an embarrassing outcome for a Wall Street titan who led Goldman Sachs before being ousted in 1999.
Corzine had hoped to strike a deal with a number of firms, including Barclays Capital, Goldman Sachs, Australian financial institution Macquarie Group and others, to purchase all or parts of the firm, sources noted.
However, few of the firms appeared willing to embrace fresh risk given the markets jitteriness around Europe and regulators weren't keen either, sources say.
Even during the firm’s hectic weekend shotgun deal making, Corzine held out that his bets on Europe only needed time to bear fruit and believes that the market worries around the broker dealers is overblown.
The heat on Corzine’s firm came to a head after the firm reported a record loss on Sept. 26 followed by a series of downgrades from major rating agencies Moody’s Investors Service and Fitch took its debt down to junk-bond levels the following day.
http://www.nypost.com/p/news/business/with_frantic_sales_talks_failing_tiO1ERdMp7SN1PnC7UC54N
:lol:
Obama once considered Corzine to replace tax cheat Tim Geithner, but I guess Obama needed that corporate wall street money to keep rolling in since Corzine is one of Obama's top bundlers, raising more than $500,000 for him. But don't worry about Corzine being out on the streets with the OWS protesters, its reported that Corzine's severance package could allow him to walk away with around $12 million. $12 million for joining a company and, in two years, flying it into a mountain. Quick, someone go tell Occupy Wall Street.
Last Updated: 10:32 AM, October 31, 2011
Posted: 7:31 AM, October 31, 2011
Besieged broker MF Global filed bankruptcy today after a frantic effort over the weekend by CEO John Corzine to strike an out-of-bankruptcy came up short.
The embattled broker dealer run by the former New Jersey governor hoped to sell some of the company’s assets in a complicated transaction to rival Interactive Brokers Group, a move that must receive the blessing of a bankruptcy judge, according to people familiar the situation. But that deal fell apart.
The bankruptcy ended one of the most harrowing weekends on Wall Street since Lehman Brothers on Sept. 15, 2008 imploded on worries that it was choking on toxic mortgage debt.
Three years later, Corzine — a former Goldman Sachs CEO — was pounding the phones this past weekend in an attempt to secure a white knight to purchase all or parts of MF Global after concerns about the broker-dealer’s exposures to some $6.3 billion in European sovereign debt decimated its shares in a wild week off trader for the firm that saw it lose three-quarters of its equity value.
For Corzine, 64, a bankruptcy would be another knock on his reputation after choosing to dial up European risk at MF Global when other larger firms had grown weary.
Corzine is not expected to stay on at MF Global — an embarrassing outcome for a Wall Street titan who led Goldman Sachs before being ousted in 1999.
Corzine had hoped to strike a deal with a number of firms, including Barclays Capital, Goldman Sachs, Australian financial institution Macquarie Group and others, to purchase all or parts of the firm, sources noted.
However, few of the firms appeared willing to embrace fresh risk given the markets jitteriness around Europe and regulators weren't keen either, sources say.
Even during the firm’s hectic weekend shotgun deal making, Corzine held out that his bets on Europe only needed time to bear fruit and believes that the market worries around the broker dealers is overblown.
The heat on Corzine’s firm came to a head after the firm reported a record loss on Sept. 26 followed by a series of downgrades from major rating agencies Moody’s Investors Service and Fitch took its debt down to junk-bond levels the following day.
http://www.nypost.com/p/news/business/with_frantic_sales_talks_failing_tiO1ERdMp7SN1PnC7UC54N
:lol:
Obama once considered Corzine to replace tax cheat Tim Geithner, but I guess Obama needed that corporate wall street money to keep rolling in since Corzine is one of Obama's top bundlers, raising more than $500,000 for him. But don't worry about Corzine being out on the streets with the OWS protesters, its reported that Corzine's severance package could allow him to walk away with around $12 million. $12 million for joining a company and, in two years, flying it into a mountain. Quick, someone go tell Occupy Wall Street.
