by Christopher Freeburn | August 17, 2012 9:28 am
With reports circulating that federal regulators will not seek criminal charges in the collapse of brokerage MF Global, the firm’s former head, Jon Corzine is considering a new career option.
The one-time Governor of New Jersey and former head of Wall Street giant Goldman Sachs (NYSE:GS), is mulling the idea of starting his own hedge fund, according to the New York Times.
Given the very-public demise of MF Global – in which up to $1 billion in customer funds vanished – another step into financial markets might seem like a curious choice for the billionaire.
However, sources close to the former governor say that Corzine wants to rebuild his image as a money manager and shake off the stigma attached to MF Global’s demise.
Federal regulators have apparently concluded, after ten months spent delving through MF Global documents and interviews with company staff, that the brokerage failed due to lax management and poor internal controls. They have found no evidence that senior executives knew that customer funds were being used to cover the firm’s bad bets on European debt.
Investigators want to interview Corzine in September, which will likely mark the end of the case.
Still, Corzine faces millions of dollars in litigation from MF Global investors who lost money. He may also face civil penalties from regulators and could be barred from trading.
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