We only ask that because Gasparino’s take on Jon Corzine — the CEO of rapidly ailing MF Global — is one of the most brutal things we’ve read form Gasparino in a long time, and that’s saying something.
Here he is, recounting the old days
He left (he was actually booted) from Goldman in 1999 after the firm made a series of bad bets on his watch tied to the money-losing trades of the faltering hedge fund, Long-Term Capital Management. The LTCM fiasco was big enough that it affected every major Wall Street firm and required a government bailout to save the financial system, or so we were told (sound familiar?). But it also occurred in the middle of the technology bubble that showered huge profits on the banks and made Corzine a millionaire 500 million times over.
Corzine’s reputation should have been in tatters; by the end of his days at Goldman, Corzine was regarded as a lousy manager, a poor judge of risk and the reason why Goldman had to delay plans to convert from a partnership to become a public company. But he used his winnings to finance a career in New Jersey politics, first being elected as US senator and later as the state’s governor.
He goes through Corzine’s return to MF Global, and his attempt to turn it into a risky trading shop a la Goldman, before returning to the good news:
There is some good news to report: MF Global won’t be bailed out by the federal government, and will likely fail. Unlike Corzine’s old firm, MF Global isn’t big enough to be “systemically important” to the nation’s economy and the financial system
And when it does fail, it will finally end the Wall Street career of Jon Corzine, and finally prove that there are consequences to idiotic risk taking.