In Wit on 18/11/2011 at 6:10 am
The private equity investor J. Christopher Flowers used to be friends with Jon S. Corzine, whom he picked to run MF Global. They were both partners in Goldman Sachs, where the latter was also co-CEO. But the $47.8 million loss that Mr. Flowers’s company could suffer on the brokerage’s bankruptcy has strained relations between the two, the Wall Street Journal reported late last week.
Isn’t there a saying. “A friend in need, is a friend indeed”?
In Uncategorized on 17/11/2011 at 6:22 am
Investors bought US$325 million in senior notes MF Global (which is now in Chapter 11) sold in August 2011. The securities contain a “key man” provision that would increase the interest rate by 1 percent if Mr. Corzine were nominated to a White House cabinet position before July 2013, an unlikely prospect now. The notes have lost nearly half their value in just three months since their issuance, so buyers are going to be looking to recover a portion of their losses possibly by suing Corzine.