As Governor of New Jersey and a leading “progressive” politician, Corzine decried income inequality and Wall St pay (see the links in the New York Times article below). But when he lost his bid for re-election and returned to Wall St, his actions did not match his words.
He also decided that his new firm, M F Holdings, would become a major financial speculator, like his old firm Goldman Sachs. Of course Goldman Sachs has an advantage. Since 2008, it has been allowed to borrow newly printed money at zero interest (adjusted for inflation) directly from the Federal Reserve. M F Holdings could get the same money but from a dealer rather than the Fed and at a slightly higher cost. Now the speculations have gone south, the firm is bankrupt, money is reported “missing”, and Corzine doesn’t look good.
But keep this in mind. If the Fed, an agency of the US government, did not print all this money and provide it to Wall St virtually for free, none of this would have happened.
Hunter Lewis 11-2-2011