I've received some questions about where the board of directors of MF Global was during the time when Jon Corzine took on so much additional risk. What were they told about what MF Global was doing? What did they know?
One thing's for sure: it's a sophisticated board. It includes a former CEO of HSBC (Martin J.G. Glynn), a managing director at J.C. Flowers (David L. Schamis), and the head of the world's largest inter-dealer money broker, ICAP plc (David Gelber).
I turned to Jim Kristie, editor of Directors and Boards magazine, for his thoughts.
"Corzine must have rammed through a strategy shift for MF," he wrote to me. "Most any public company board would have had to bless any such strategy shift. A CEO can’t do it alone. If Corzine acted imperiously to change strategy, shame on the board. If the board bought into this new strategy, then it is as accountable as management for what is happening."
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