| |||||||||||||||||||||||
| |||||||||||||||||||||||
 Gov. Jon Corzine was handed walking papers on Tuesday night by the electorate of New Jersey, who chose rival Republican Chris Christie. So what's next for the 62-year-old former Goldman Sachs Group Inc. (NYSE:GS) CEO who turned to politics after receiving a pink slip from the bank in 1999?Odds are good the former bond trader will return to Wall Street after spending almost $160 million on three campaigns over the last decade -- at least to replenish his coffers for a future run. Odds are strong that Corzine might have a chance to return to politics in 2014 when Sen. Frank Lautenberg, D-N.J., will likely retire at the ripe old age of 90. So what to do between 2010 and 2014? Given the reported acrimony over his departure at Goldman (even though the source of the bitterness, Hank Paulson, is also no longer at the firm), it is doubtful the bank would be his first choice. Additionally, the popularity of Goldman Sachs as a populist whipping boy makes it doubly doubtful he'd return if he's interested in eventually returning to politics at some point. Another option is starting a boutique bank or even a hedge fund. However, if Corzine launches a new firm, then perhaps he's not eyeballing a return to the U.S. Senate in 2014. After all, who would want to join his firm knowing full well he could bolt in less than four years? Of course, Corzine could mitigate those concerns by partnering with another well known banker who could continue on without him. Additionally, he could follow the lead of former New York Mayor Rudy Giuliani, who sold his boutique when political aspirations came calling. Upon leaving City Hall, Giuliani parlayed his experience in crisis management during 9/11 into forming boutique security firm Giuliani Partners in 2002, which he sold in 2007 to Macquarie Group. However, it might be more expedient for Corzine to join someone else's boutique firm to wait out his stay. It is not unheard of for politicians to go to work on Wall Street to build a war chest for future elections. For example Rahm Emanuel, Obama's chief of staff, joined Lazard after serving in the Clinton White House before his run for Congress -- all to build a fortune for his campaign. However, a better example of a politician turned Wall Street dealmaker is former Massachusetts Gov. Bill Weld. After losing a close race to unseat Sen. John Kerry, D-Mass., in 1996, Weld left the governorship for an appointment to become the ambassador to Mexico. However, fellow Republicans in the Senate led by Sen. Jesse Helms quashed his efforts to step across party lines, ending Weld's political career. After leaving politics, Weld took his experience as governor to Wall Street where he became a founding partner of private equity firm Leeds Weld, known as Leeds Equity Partners since his departure in 2005. The firm specialized in educational investments, an area Weld had focused on as governor. Even after leaving Leeds, Weld, who was a U.S. district attorney before governor, returned to law by joining McDermott Will & Emery's New York office. He continues to put his experience as governor to work at the firm as he specializes in public-private infrastructure projects (see related story from The Deal magazine). However, whatever decision Corzine makes, we likely won't be privy to it for another three months, since his term does not expire until January when Christie is formally sworn in. Till then, we can only guess what's next for the lame duck governor. - Matthew Wurtzel
CategoriesComments
From: Matthew Wurtzel
 ,
Cronk, Thanks for the response, but I'm doubtful that the Obama administration would want to offer Corzine anything of significance beyond an ambasadorship. Right now he's damaged goods that has given the Obama White House a black eye in the mainstream media, who are misreading the lose as bad news for Obama even though the truth is this election was a referendum on out of control taxes and not national issues like gay marriage. The Obama camp could send him off to some Embassy, but that would be the end of Corzine's political aspirations. He needs to rebuild his war chest if he is interested in continuing a public life, and the best way to do that is on Wall Street. Matthew Wurtzel
Posted on:
November 4, 2009 2:10 PM
From: David Pohndorf,
Having known Jon ( and ex-wife Joanne )very well for 30 years, I would suggest that we remember that Jon was always a trader ( govies ), not an investment banker, not an equities guy. Jon has always been enormously generous with his own money, but even more so with that of others. However, much of his generosity has been directed toward black ministers' associations in inner cities and political hacks, many of whom are now incarcerated, all of thios in his self interest, i.e., "buying" votes.
Posted on:
November 5, 2009 10:42 AM
 Deal Video
    Community
 Elsewhere on The Deal.comDealwatch
The Deal MagazineCorporate Dealmaker
The Deal VideoCategories
Blog roll
Archives
| |||||||||||||||||||||||
|
|
|
|
|
Corzine will land on his feet. There's plenty of room in the Obama Administration for Goldman Sachs Alumni right, Mr. President??