The NY Times Dealbook reported today about MF Global’s former head, ex-U.S. Senator, and ex- GS honcho Jon Corzine:
“Mr. Corzine, in a bid to rebuild his image and engage his passion for trading, is weighing whether to start a hedge fund, according to people with knowledge of his plans. He is currently trading with his family’s wealth. If he is successful as a hedge fund manager, it would be the latest career comeback for a man who was ousted from both the top seat at Goldman Sachs and the New Jersey governor’s mansion.”
Media outlets have jumped on the story with a mix of outrage and some potential support within the GS alumnae and hedge fund community.
Let’s take a quick look at some of the comments floating out today in reaction to the news:
“…recent developments indicate that federal prosecutors do not expect to file criminal charges against the former New Jersey governor. The former Goldman Sachs chief is not yet totally in the clear. A bankruptcy trustee on Wednesday joined customers’ lawsuits against Mr. Corzine, and regulators are still considering civil enforcement actions, which could cost him millions of dollars or ban him from working on Wall Street.” --NY Times
“Yep, that's right. Turn $1 billion into vapor…ruin your reputation and start a hedge fund. The mind reels.” --Advanced Trading Daily
“Yes I trust Jon Corzine and I think if he starts a fund he will make money, and be very successful. We closed our seeding business, so I couldn’t seed him, but he is a person that I would have no problem being partners with. We have different politics, but that would make it even more interesting.” --Anthony "The Mooch” Scaramucci, ex- GS and SkyBridge Capital founder and frequent CNBC guest
“After interviewing MF Global employees, however, Federal investigators reportedly believe that what felled MF Global was recklessness, not criminality.” --Business Insider (some interviews with floor traders on CNBC indicated they do not care what it is called as they either lost money, had their businesses disrupted, to say the least, or still have funds unaccounted for from MF Global).
“Corzine is having no ‘fun in the shun’…shamed pol a Hamptons pariah.” --NY Post, on a haggard and noticeably thinner Corzine’s social life this summer in New York’s wealthy and very social Hamptons
“If Corzine can show a few years of decent returns he just may be able to salvage his ability to walk into a Wall Street cocktail party without people looking away and snickering. Corzine only needs to impress enough people in the circles he lives in. He knows he’s never going to return to politics or be tapped to run a big firm.” --MarketWatch
“Something has to be done about these ‘CEO -I DIDN’T KNOW’ legal defenses.’” --interview on Bloomberg Surveillance, bemoaning the lack of prosecutions in high profile cases such as MF Global, Lehman Bros., and many others, although giving some credit for the ramped up insider trading and fraud prosecutions over the past few years.
And so it goes.
David W. (aka The Underground Trader)
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