Jon Corzine's Congressional Grilling
On December 7, the House Agriculture Committee grilled Jon Corzine, the former CEO of MF Global. This is a record of how I saw that play out on Twitter.
- Corzine started out with apologies.
- Tweeters were not moved.
- Neither were the House members. Rep. Tim Johnson, of Illinois (I misidentified him in my tweet as Rep. King.
- Corzine is asked why he ignored warnings from MF Global's chief risk officer, Michael Roseman. Corzine concedes that Roseman raised red flags about the exposure to European debt, and informed everyone he could. But Corzine made sure Roseman was fired. When a director of MF Global challenged Corzine, Corzine said that if the board didn't give him full faith to do his job, he might as well leave. The director was apparently cowed. This type of bratty behavior on Corzine's part is not unusual among Wall Street stars. In fact, Corzine was pushed out as CEO of Goldman because his partners got sick of him throwing his weight around and acting like their boss instead of their partner.
- The plot sounded familiar.
- Corzine's choice to replace Roseman was something of a markets jockey, a risk-taker like Corzine himself.
- Corzine says he didn't know about the firm's missing money.
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