This year, I introduced a weekly series called "CEO Gaffe of the Week." Having come across more than a handful of questionable executive decisions last year when compiling my list of the worst CEOs of 2011, I thought it could be a learning experience for all of us if I pointed out apparent gaffes as they occur. Trusting your investments begins with trusting the leadership at the top -- and with leaders like these on your side, sometimes you don't need enemies!
This week, I want to highlight my selection for worst CEO in 2011, Jon Corzine, as well as the FBI, in general.
The dunce cap
If you thought MF Global (OTC: MFGLQ) customers were pissed off about their money being improperly used to support the firm while it was making a $6.3 billion bet on sovereign debt in Europe, then imagine how ticked off they’re going to be to find out that after months of investigating the who’s and what’s of MF Global’s collapse, no criminal charges are expected to be filed by the FBI against Jon Corzine or any of MF Global’s management team.
Apparently, “Oops, did I do that?” is still a perfectly legitimate escape clause for Wall Street, and MF Global stands as a testament to this fact.
At the heart of the issue is a $175 million payment made to JPMorgan Chase
Investigators, who have included the FBI and the Commodities Futures Trading Commission, appear to have concluded that it’s unlikely that Jon Corzine was aware of the origin of the funds being transferred to JPMorgan. This doesn’t put Jon Corzine, the former head of Goldman Sachs
To the corner Mr. Corzine and investigators
If you thought MF Global’s "whodunit?" attitude was bad, then grab something to bite into because you’re going to love this…
According to multiple media sources, Jon Corzine is pondering the idea of opening up his own hedge fund. That’s right -- the man who decimated MF Global in a matter of days with a ridiculously highly-levered bet on poor quality debt in Europe, the man whose company lost its clients’ money, wants to invest your hard-earned money!
Are you serious? That’s like posting a “kick me” sign on your back! If I had my way, Corzine wouldn’t be allowed near a trading floor again as long as he lived, and I can only hope investors, mutual funds, endowments, and trusts are smart enough to keep their money away from the captain of the financial Titanic!
Do you have a CEO whom you'd like to nominate for this dubious honor? Shoot me an email, and a one- or two-sentence description of why your choice deserves next week's nomination, and you just may wind up seeing your nominee in the spotlight.
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