Posted on 05/30/2010 9:26:22 AM PDT by SeekAndFind
The new head of MF Global Holdings Ltd. outlined dramatic moves to cut staff and costs as the brokerage reported a $96.5 million net loss for its fiscal fourth quarter.
Jon Corzine, the former New Jersey governor and Goldman Sachs chief who took over as chief executive officer in March, plans to realign the company, drop some new initiatives and cut 10% to 15% of its work force after reporting its fifth consecutive quarterly deficit.
"Let me state the obvious," Mr. Corzine said on a conference call discussing the results. "These are not the kinds of results that MF Global management will tolerate, nor should its shareholders."
MF Global is one of the largest brokers and clearers in exchange and over-the-counter markets, with a particular strength in the retail sector. But it has lost more than $200 million since its 2007 flotation as it was hit by a trading scandal and concerns over its risk-management practices.
Mr. Corzine, the third CEO in as many years, aims to save $60 million over the next 12 months from initiatives that focus on its compensation strategy. Pay and benefits accounted for more than three-quarters of revenue in the latest quarter, and Mr. Corzine said later Thursday that MF Global is targeting a compensation ratio between 50% and 55% by the end of its fiscal 2011.
MF Global shares moved up following Mr. Corzine's remarks Thursday, recently trading 0.5% higher at $8.16.
The company reported a net loss of $96.5 million for its fiscal fourth quarter, ended March 31, after a $119.3 million deficit in the same period last year. The loss per share narrowed to 78 cents from 98 cents.
(Excerpt) Read more at online.wsj.com ...
What a useless piece of garbage this guy Corzine is. Maybe if he’d had more of a “managerial” attitude while he was Gov. NJ wouldn’t be in the mess we are now.
I remember reading a quote from him (I can’t vouch for the veracity and I’m not going to look it up, but I’m SURE this was his attitude) where he told the teachers union, or the CWA or one of the public unions here in Jersey that he was going to try and get them a good contract.
He should have just donated the millions he paid to get elected Gov. to charity, THAT would have done some good.
Jon Corzine, miserable failure!
Maybe they hire Christie when he’s done to clean up the mess Corzine will make?
Liberal thy name is hypocrite.
They sure are trying hard to play the opposite of what who they really are.
They sure are trying hard to play the opposite of what who they really are.
“
They sure are trying hard to play the opposite of what who they really are.
“
Reminds me of the old saying:
“Democrats are afraid people will understand what they are actually trying
to do; Republicans are afraid people won’t understand what they are
actually trying to do.”
Nailed it.
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