For once, the hot question of the weekend isn’t about what’s being cooked up in Europe.
Instead it’s about MF Global, Jon Corzine’s mini-Goldman that’s on the verge of collapse.
To step back, if you haven’t seen its remarkable stock chart, check it out.
That, of course, is the chart of death, especially coming as markets have mostly rebounded (especially financials).
Here’s the late from Reuters:
MF Global has reached out to major banks including Barclays PLC , Citigroup Inc , Deutsche Bank , Jefferies Group Inc , JPMorgan Chase & Co , Macquarie Group Ltd , State Street Corp and Wells Fargo , according to the source.
“If it gets done, it needs to get done by Monday,” the source said. “Whether it gets sold in parts or pieces, they are in good shape to orchestrate this process.”
Meanwhile, if you want a really brutal take on Jon Corzine’s management at MF Global, check out Charlie Gasparino who, quite bluntly, rips him a new one, starting with his departure from Goldman Sachs.
Here’s a sample:
But put a clean balance sheet in the hands of someone who saw the financial crisis as nothing more than a passing storm, and you know what happens. Within minutes of taking the job Corzine began boasting that he was building a mini-Goldman, as he sought to emulate Goldman’s business model of taking enormous bets in various markets.
There was just one problem with that strategy: it’s prone to error. Even the best traders like those at Goldman screw up, as the events of 2007 and 2008 demonstrate.
Corzine isn’t close to being among the street’s best traders. so he didn’t waste any time screwing up. Less than a year after taking the job, he and his traders made a calculated bet that Europe wasn’t the basket case that we now know it truly is. His traders bought more than $6 billion sovereign debt most of it issued by Italy and Spain, the two countries that are now replacing Greece in the likely to default department.
With that, Jon Corzine gambled away MF Global, which is now in a mad dash to sell parts of itself while it moves closer to liquidation, Lehman style. Hundreds of people will likely lose their jobs in the aftermath, which is sad since most have nothing to do with the part of the firm that’s causing the problems.
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