Corzine’s MF Global Headed For The Gutter — But Corzine Will Still Make Millions
11:40 am, October 31st | by Hillary Reinsberg
As we said last week, being the CEO of Goldman Sachs and a state governor are tough acts to follow. Jon Corzine, who heads the financial brokerage MF Global, is preparing for the company to file for bankruptcy this morning. That doesn’t mean it’ll be such a bad thing for Corzine. You’ll be shocked by how much he’s getting in severance pay.
MF Global shares have stopped trading as of early this morning, as the company prepares to file for bankruptcy protection, Dealbook reports. They’re also hoping to sell some of their assets. Over the past quarter, the company has faced a $187 million-plus loss and stock prices have tumbled as a result. Major ratings agencies also downgraded the firm to junk status. Insiders were looking at the glass as half full last week — remaining convinced that the company would make it through the rough patch.
Now, it doesn’t look like that will happen.
For Corzine, who’s been at the helm for just two years since taking over after failing to get reelected as New Jersey governor, is due to get quite a nice payout when the company falls apart. He’s expected to get around $12.1 million.
Though the company doesn’t have the name recognition of a bulge bracket bank, it’s actually a major player in Wall Street trading, with a big hold on commodities and derivatives trading.