After the embarrassing MF Global bankruptcy, old friends Jon Corzine and Chris Flowers are not really speaking to each other.
Also, sources told the WSJ that Corzine is no longer an operating partner at Flowers’ private equity firm, J.C. Flowers.
Mr. Flowers was embarrassed and disappointed by MF Global’s collapse, feeling he had entrusted the firm to Mr. Corzine, said one person familiar with his thinking.
The men have hardly spoken since the firm filed for bankruptcy, according to a person familiar with the matter. They declined to comment.
This is 180 degree turn from their close friendship. Corzine and Flowers were pals back in the day at Goldman Sachs.
Both of them worked at the bank for more than 20 years in the bad old days before it went public. (Flowers left in 1998 and Corzine left in 1999.)
When Corzine became a U.S. Senator and later served as governor of New Jersey, Flowers helped manage his investments.
He also contributed to several of Corzine’s political campaigns, according to the Journal.
Corzine then lost his bid for reelection for New Jersey governor in 2009. Soon after the loss, Flowers made him an operating partner at his private equity firm.
Then last year, it was Flowers who pushed to get his old friend Corzine the top spot at broker-dealer MF Global.
And we all know how that one turned out.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.