Corzine to become Head of MF Global

On Tuesday (March 23), the former Goldman Sachs Group Inc. chairman Jon Corzine was named chairman and chief executive of MF Global Holdings Inc., the world's largest independent futures brokerage.

 

Accordingly, the successor of Bernard Dan who said last week on MF Global broad that he resigned from CEO position for “personal reasons” will be heading MF Global in less than 18 months. The company decided to hire Corzine as it is trying to deal with its trading scandal and a string of quarterly losses. Corzine also succeeds Alison Carnwath as chairman.

 

Becoming chairman and CEO of the MF Global, Jon Corzine will be in charge of returning the company to profitability and positioning it to capitalize on the agitation resulted from the global financial crisis.

 

Corzine, 63, said in an interview on Tuesday that the company will concentrate on earnings and will make internally capital generation to get attraction from investors.

 

The new chairman of MF Global said Tuesday that he was pushed to create franchise value and chances for international growth for the company though MF Global’s value is just 1 % lower than that of Goldman Sachs Group Inc.

 

Just a few months ago, there was a speculation that Mr.

Corzine may hold a more prominent role in financial services. The Bank of America Corp., a much more big-scale and prominent company in comparison with Goldman Sachs, had mentioned him as a possible CEO.

 

Mr.

Corzine hold the chairman position of Goldman Sachs for five years in the 1990s and was able to help the company gain huge profits in years before the financial crisis occurred. He became successful in financial industry after retiring Wall Street and his earnings made him a well-known on the national political stage. He served as the 54th Governor of New Jersey from 2006 to 2010.

 

MF Global was stuck in a lot of problems after being spun out of hedge-fund Man Group PLC in 2007. In 2008, the company lost $141 million after its trader made an incorrect bet on the wheat price. Added to these, the company was fined $1o million by the Commodity Futures Trading Commission in December 2009.

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