Back in February, Vanity Fair ran a piece on Jon Corzine in the wake of the whole MF Global situation, attempting to determine “what set Corzine on the road to ruin.” Figuring his personal life would be a good place to start, some story lines that were explored included JSC’s relationship with his children and his divorce from Joanne, who he met in kindergarten and was married to for 33 years. The former was described as having become “increasingly distant” as Corzine made his way up the ranks at Goldman Sachs. The latter “bitter,” which was not helped by the fact that, according to VF, Joanne had gotten “too close” to a onetime GS employee with whom Corzine had “bad blood,” named David Tepper. Jon’s children happened to catch the article and responded to it today in a letter to the editor, the short version of which is: “YOU KNOW NOTHING.” From the longer version: Read more »
Want to feel close to Jon Corzine but can’t bring yourself to tell people you live in Hoboken? Rather than buying his NJ love shack, perhaps consider placing a bid on a ’87 Jaguar he supposedly once owned and is now on the eBay auction block. Read more »
The last several months have not been the best of times for Jon Stephen Corzine. His fund went down for the dirt nap. He was forced to shelve his dreams of becoming a count. He made the tearful decision to put his Hoboken hideaway on the market, probably to free up some cash should it become necessary to pay legal fees. And while some pissant MF Global clients have in fact served him with papers, today brings the joyous news that any sleepless nights spent worrying over doing time were all for naught. Read more »
I’m not the only person who noticed that Mark Zuckerberg is going to have more than the usual amount of control over Facebook (Facebook Facebook Facebook), both unto his grave and beyond. As a conceptual matter I’m kind of down with that though I’m not going to, like, buy shares in the IPO or anything.* But my basic take is that, if you’re going to buy stock in in a poking machine that makes about a penny per user per day, you should be willing to trust Mark Zuckerberg. Because if you were the inventor of Facebook, you would have invented Facebook, or something.
The alternative to giving a hoodied 27-year-old complete control over all aspects of a multibillion dollar business is to have a team of professional managers being all professional and managing by committee and checking each others’ work. It is not clear what is better. I suspect Facebook would not be a $100 billion asset today if it had sold to Yahoo in 2006 though, also, no one has ever accused Yahoo of being professionally managed. But the point is that those are two distinct styles and there are arguments for both. Professionalism has much to recommend it but so does complete domination by one visionary; for instance, founder dominated firms outperform the market.
MF Global Chief Risk Officer To Recount The Time Corzine Brusquely Told Him His Risk Models Didn’t Work In “The Real World”By Bess Levin
The chief risk officer who was brought in to install risk management systems at MF Global after a rogue trading incident in February 2008 is expected to tell Congress Thursday he outlined his concerns about European sovereign debt trades in the fall of 2010…At the hearing, Michael Roseman is expected to say he “expressed my growing concerns with regard to the potential capital risk associated with the growing positions and began to express caution on the growing liquidity risk,” according to a copy of the testimony reviewed by The Wall Street Journal. In mid-September, Roseman told MF Global’s chief executive, Jon Corzine, that he would consult the firm’s board of directors on requests to increase limits on the European trades. According to his written testimony, Roseman is expected to say that by late October of 2010, the positions were approaching $3.5 billion to $4 billion. After discussing his concerns with Corzine and others, the risk scenarios he presented “were challenged as being implausible.” Roseman’s testimony doesn’t specify who aside from Corzine and the board he told of his concerns. [FINS]
JSC has reportedly put his Hoboken hideaway on the market, for reasons that are unclear at this time (and which we should not speculate over. Surely there are some who will be quick to suggest he’s downsizing and freeing up cash in case he needs money for legal fees but we have no idea, do we? Maybe the new venture became a success sooner than anyone thought, and he’s moving to a bigger place. Maybe he’s decided to live in France full-time). Some details, for those interested in a place with a story to tell: Read more »
Wall Street Fraternity’s Hazing Process Involves Telling Awful Jokes While Dressing In Drag And Being Pelted With DessertsBy Bess Levin
The “jokes” clearly being the most humiliating part of the proceedings. Read more »