It isn't 2008- but Jon Corzine, former Goldman Sachs boss-man, former US Senator and Governor of New Jersey, was running risks like it still was 2008. That's the gist of MF Global's failure. It owned $41 billion in assets, against which it apparently had $39 billion in debt-- and as protection against that mountain equity capital that did a fast shrinking act from a pretty puny $500 million plus $325 million of supposedly investment grade debt. We will have to find out the smarmy truth about why the bond offering hinted at Corzine's possible departure at the very moment he was promising to make his dream of another Goldman come true.
|