Friday, December 09, 2011
For a leader of an organization to claim ignorance of its activities is a fatal blow to credibility. Yet, that is the claim that John Corzine made yesterday in Congressional hearings. He said he didn't know where $1.2 billion of customers' money went when the firm collapsed. If he doesn't know, who should? Corzine's situation is tragic. He went from Goldman Sachs to a senator then governor of New Jersey and finally to CEO of MF Global where his career ended spectacularly. There is little that he can do to recover from the blow of MF Global's bankruptcy. His testimony to members of Congress yesterday was in his own words, the right thing to do. He deserves credit for that, but it won't offset the misery caused by MF Global's liquidation. From a PR perspective, Corzine is toxic.