Corzine’s Firm Down on Its Luck
Former New Jersey governor Jon Corzine’s firm, MF Global, has fallen on hard times. Bloomberg reports:
Chief Executive Officer Jon Corzine . . . is attempting to turn MF Global [a futures broker] into a medium-sized investment bank. He’s failing to convince investors that he can transform the broker into a Wall Street contender, as it has dropped 71 percent since Aug. 1, compared with a 17 percent decline in an index of 11 securities broker-dealers.
“MF’s results are severely below expectations,” Ed Ditmire, an analyst with Macquarie Group Ltd. in New York, wrote in a note to clients.
It gets worse:
MF Global plunged 39.4 percent to $2.15 at 11:45 a.m. in New York trading. That’s the largest drop since March 2008 and is down from $9.21 on Jan. 10. Its $325 million of 3.375 percent convertible notes due in August 2018 fell 18.6 cents to 48.5 cents on the dollar, according to Trace, the bond price reporting system of the Financial Industry Regulatory Authority.
Net revenue fell 14.3 percent to $205.9 million compared with the year-ago period, the company said today.
“Without question the quarterly market conditions were as difficult as I have experienced in my 30 years” in finance, Corzine said on a conference call with analysts, excluding the 2008 credit crisis when he was governor of New Jersey.
Corzine is one of President Obama’s top bundlers. He had raised at least $500,000 for the president by July, according to the Associated Press.