In the wake of MF Global's late 2011 bankruptcy, TheStreet highlighted the challenges Corzine faced in trying find a profitable path for the company, after he took the reins of the commodity trader in March 2010.
Notably, in an effort to transform MF Global a full service brokerage, Corzine made a big bet on the short term debts of European nations, in an effort to capitalize on the region's escalating woes and fund an expansion effort. After MF Global disclosed its European exposure in the summer of 2011, ratings agencies cut the firm's bond ratings to or below investment grade levels, putting it on the brink.
While Corzine's European trade is likely to have worked out in the end - given a stabilization in Europe in 2012 -- his management of the firm's risk taking has come scrutiny and is likely to be a centerpiece of House subcommittee findings. Full findings are expected to be released later this week.
In August, the New York Times reported that it's unlikely MF Global's demise will lead to a criminal case against Corzine or other key employees of the firm.Jefferies (JEF), an investment bank that some expected to find a similar fate to MF Global, was sold to Leucadia National (LUK) earlier this week. -- Written by Antoine Gara in New York
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