Highly leveraged, with limited liquidity, MF Global was unable to meet margin calls or the demands from regulators to boost capital reserves. An eleventh-hour attempt last weekend to raise more funds or find deeper pockets (a buyer for the entire company) failed, leaving protection under bankruptcy the only viable option.Despite decimating the company, had CEO Jon Corzine succeeded in selling the derivatives broker-dealer to a third-party, he would have been entitled to a $12.1 million severance package, according to the terms of his employment contract. Ironically, thanks to the last Republican in the White House, George W. Bush, Corzine is unlikely to receive any going-away gifts.
Can the former Governor and Senator from New Jersey count on Democratic allies in the White House to bail him out of this debacle?
Read more at 24/7 Wall Street: MF Global and Corzine’s Folly
David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.
3 comments:
That's a really big severance pay. Too bad the offer's all gone up in smoke. He must be kicking himself right now.
CEO Jon Corzine must be in a total mess. It requires great courage for one to compose His/Herself and try to let all go that way.
It's so painful when a dream or a vision like that one Jon Corzine had, immediately turns on the negative side, only to leave you counting losses.
although what he was dreaming of has not come to be, MF Global Holdings (NYSE: MF),ought to move that vision to greater heights and make it real.
Am so sorry for Mr Jon...anyway, we appreciate your words!
In this economy, it's hard to tell what the best decision is. There's nothing wrong with a little financial risk.
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