In an exclusive report from three of Vanity Fair’s premier business writers—contributing editorsBryan Burrough, William D. Cohan, and Bethany McLean—the February issue delivers a sprawling account of the personal and professional battles of Jon Corzine, the former Goldman Sachs C.E.O. and ex-politician whose helming of MF Global resulted in a notorious $41 billion filing for bankruptcy and a $1 billion loss in firm equity. According to the piece, for the fiscal year that ended in March 2011, MF Global recorded day-one gains of $85 million on the former New Jersey governor’s risky trades on European sovereign debt and other assets, thanks to an accounting ploy. Because there were barely any expenses associated with such trades, the gains were almost pure profit. “Corzine would later tell investors that he made a $6.3 billion bet on sovereign debt, but the company’s filings made it look like he had a much bigger long position at the end of June 2011—$11.4 billion, offset by ‘short’ positions of almost $5 billion,” Vanity Fairreports. One analyst says: “If those trades had not been there, MF Global would have been forced to sell or go out of business.”
As federal authorities searched for the brokerage house’s more than $1 billion in missing customer money, friends and former associates of Corzine weighed in on the ways his personal quirks informed his management style. “On this, Jon became a zealot,” one person says of Corzine’s European-debt trades. “He managed the process soup to nuts,” says a former employee. “He knew every number back and forth. He’d talk to the accountants and the board. He’s not a detail-oriented guy, but on this he knew every detail.”
As federal authorities searched for the brokerage house’s more than $1 billion in missing customer money, friends and former associates of Corzine weighed in on the ways his personal quirks informed his management style. “On this, Jon became a zealot,” one person says of Corzine’s European-debt trades. “He managed the process soup to nuts,” says a former employee. “He knew every number back and forth. He’d talk to the accountants and the board. He’s not a detail-oriented guy, but on this he knew every detail.”
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