Jon Corzine

Jon Corzine
Jon Corzine
Born	January 1, 1947 (age 79); Taylorville, Illinois, U.S.
Occupation(s)	Politician, financial executive
Years active	1975–2011
Known for	U.S. Senator from New Jersey (2001–2006), 54th Governor of New Jersey (2006–2010), CEO of MF Global

Jon Stevens Corzine ( ; born January 1, 1947) is a former American politician and financial executive who represented New Jersey as a U.S. Senator from 2001 to 2006. He also served as the state's 54th governor of New Jersey between 2006 and 2010. Corzine sought reelection but was defeated by Republican challenger Chris Christie. Affiliated with the Democratic Party, he previously held a prominent role at Goldman Sachs and later became CEO of MF Global from 2010 until its failure in 2011.

Education and early business career

Born in Taylorville, Illinois, Corzine is the son of Nancy June (née Hedrick) and Roy Allen Corzine, Jr. His grandfather, Roy A. Corzine, Sr., was a member of the Illinois General Assembly. Raised on a family farm near Taylorville, he graduated from Taylorville High School, where he excelled as quarterback for the football team and captain of the basketball squad. Corzine attended the University of Illinois at Urbana–Champaign, joining the Phi Delta Theta fraternity, and earned his degree in 1969 with honors from Phi Beta Kappa. During his college years, he enlisted in the United States Marine Corps Reserve, serving until 1975 and reaching the rank of sergeant. He pursued graduate studies at the University of Chicago Booth School of Business, obtaining an MBA in 1973.

Corzine launched his professional career in the bond division at Continental Illinois National Bank, balancing day shifts with evening classes at Booth. Subsequently, he transitioned to BancOhio National Bank in Columbus, Ohio, which was later integrated into National City Bank in 1984. In 1975, he moved to New Jersey to join Goldman Sachs as a bond trader.

Goldman Sachs

Starting at Goldman Sachs in 1976 as a bond trader, Corzine advanced to co-manage the Fixed Income, Currencies and Commodities Division. He attained partnership status in 1980 and was appointed to the management committee by 1984. Serving as CFO from 1991 to 1994 and then senior partner until 1999, Corzine spearheaded the firm’s growth into Asia and was instrumental in its conversion from a private partnership into a publicly traded corporation.

He chaired a presidential commission on capital budgeting under President Bill Clinton and led the borrowing committee for the United States Department of the Treasury. During his tenure as senior partner, Corzine played a pivotal role in orchestrating the private sector bailout for hedge fund Long-Term Capital Management amid its 1998 crisis that posed systemic risks. Reports from U.S. News & World Report indicate tensions between Corzine and co-CEO Henry Paulson, an investment banker who assumed control after structuring the bailout. Upon leaving Goldman Sachs following its public offering, Corzine reportedly earned $400 million.

Corzine participated in several sessions of the influential Bilderberg Group—a gathering of political and business elites—from 1995 through 2004 and served on its steering committee. Additionally, he holds membership in Kappa Beta Phi.

2000 election

Following his departure from Goldman Sachs in January 1999, Corzine sought a New Jersey Senate seat after Frank Lautenberg announced his retirement. Though initially trailing by 30 points in the Democratic primary, Corzine ultimately secured the nomination by a 16-point margin, attributing his success to pollster Bob Shrum, who advised him to campaign as a "liberal progressive" instead of presenting himself as a "seasoned investment banker." In the general election held in November 2000, Corzine narrowly overcame Republican Bob Franks by three points and was officially sworn into the Senate in January 2001.

Corzine poured more than $62 million of his personal wealth into his campaign, marking it as the most costly Senate race in U.S. history at that time. Over $33 million of this was expended during the primary, where he defeated former Governor James Florio with a 58–42% vote split. His Republican challenger, Bob Franks, entered the race late after Governor Christine Todd Whitman opted not to run. Corzine’s campaign expenditure exceeded Michael Huffington’s previous record of nearly $28 million set during a 1994 Senate contest.

Throughout the campaign, Corzine chose not to disclose his income tax returns, citing confidentiality obligations tied to his former employer Goldman Sachs—a decision that drew criticism since his predecessor Robert Rubin had converted equity holdings into debt upon leaving the firm.

Corzine championed several state initiatives including universal health coverage, mandatory public preschool programs, comprehensive gun registration, enhanced funding for higher education, affirmative action policies, and support for same-sex marriage. Political commentator David Brooks observed that Corzine's progressive positions contributed to shifting the Senate further leftward despite succeeding another Democrat.

During the campaign, Corzine faced backlash over off-color remarks involving ethnic stereotypes; while he denied any religious intent behind these comments, he admitted to making jokes about Italians.

Moreover, Corzine refuted allegations of paying African-American ministers even though his foundation had contributed $25,000 to a prominent black church led by Reginald T. Jackson. Jackson had been active in opposing racial profiling and played a role in influencing changes within state police leadership. Corzine had previously donated to Jackson prior to receiving his endorsement.

Tenure

Corzine began his Senate career in 2000 as part of a distinguished cohort of incoming senators, including Hillary Clinton and Jean Carnahan. During his five years in office, he participated in 1,503 out of 1,673 votes, cosponsored over 1,000 bills, introduced 145 himself—with 11 advancing through committees—and successfully saw one become law.

He played a key role in drafting the Sarbanes–Oxley Act and advocated for reforms to the 401(k) plan following the Enron scandal, aiming to minimize investment risks despite resistance from President George W. Bush and Congress. This initiative ran counter to the growing preference for self-directed individual retirement accounts.

Among his legislative efforts, Corzine introduced the Start Healthy, Stay Healthy Act, supported tax relief for victims of the September 11, 2001 attacks, championed citizenship rights for legal resident aliens impacted by 9/11, promoted gun control measures, opposed racial profiling practices, and provided subsidies for Amtrak. Together with Senator Sam Brownback, he co-introduced the Darfur Accountability Act. He was one of 23 senators who opposed the Iraq War Resolution. Additionally, he cosponsored federal highway safety legislation encouraging DUI vehicle impoundment and was an early contributor to The Huffington Post.

In the aftermath of 9/11, Corzine and Senator Peter Fitzgerald advocated for a structured airline industry bailout but ultimately found the proposal inadequate. He also resisted reductions to Pell Grant eligibility for low-income students.

Corzine sought to implement chemical plant regulations following 9/11; although his initial legislative attempts were unsuccessful, his efforts contributed to New Jersey emerging as a frontrunner in chemical plant oversight. Alongside Hillary Clinton, he exerted pressure on the Bush administration regarding regulatory measures for chemical and nuclear industries.

On tax matters, Corzine coauthored legislation proposing a reduction of the marginal tax rate from 15% to 10% on income up to $19,000 and later suggested exempting the first $10,000 of wages from Social Security taxes for both employers and employees. He also recommended allowing dividend payments to be tax-deductible as a form of economic stimulus.

Between 2003 and 2005, Corzine chaired the Democratic Senatorial Campaign Committee, where he influenced candidate selections to prevent costly primary battles during the United States Senate elections, 2004. He was instrumental in endorsing Senator John Edwards as Senator John Kerry’s vice-presidential choice. In 2002, he publicly called for SEC Chairman Harvey Pitt’s resignation.

Committee assignments

During his Senate tenure, Corzine served on several key committees: Banking, Intelligence, Budget, Foreign Relations, Environment, and Energy and Natural Resources.

2005

By the week leading up to the election, Corzine and his Republican rival Doug Forrester collectively spent $73 million, with Corzine allocating $38 million and Forrester $19 million during the general election. When including primary expenditures, Corzine’s combined campaign costs for both Senate and gubernatorial races surpassed $100 million. Central themes of the campaign included property tax concerns—New Jersey's average property tax in 2004 was $5,500—and opposition to the Bush administration, with Corzine associating Forrester closely with President Bush.

Corzine secured the governorship by capturing 54% of the vote compared to Forrester’s 43%, receiving 1,224,493 votes versus 985,235. He prevailed in 13 out of New Jersey’s 21 counties, notably winning in the three most populous: Bergen, Essex, and Middlesex. Additionally, Corzine dominated in five of the state’s six largest counties and seven of its nine most populous.

2009

Corzine sought a second term in the 2009 election. Early polling in January 2009 by Rasmussen Reports showed Republican challenger Chris Christie leading Corzine 42% to 40%. Other surveys indicated Corzine’s approval ratings ranged from 40% to 46%, trailing his favorability between 42% and 44%. Midyear polls reflected a significant lead for Christie by double digits; however, by October the margin had tightened, with some polls even placing Corzine ahead. Ultimately, Christie defeated Corzine with 48.5% of the vote to Corzine’s 44.9%, while independent candidate Chris Daggett earned 5.8%.

Tenure as Governor of New Jersey

Corzine chose to forgo his $175,000 annual salary beginning in 2006.

Upon assuming office in January 2006, Corzine faced low approval ratings initially, largely due to a protracted budget impasse that led to the 2006 New Jersey State Government shutdown. An April 2006 Quinnipiac University poll recorded a 35% approval rating against a 42% disapproval rate. By February 2007, his approval had climbed to 50%. However, after proposing to lease the New Jersey Turnpike and Garden State Parkway as revenue-generating measures, his approval declined sharply to approximately 30% by January 2008.

A recall initiative—unprecedented in New Jersey—was launched against him but did not succeed, falling short of the required threshold of 1.2 million signatures.

Corzine advocated for public employees sharing post-retirement health care expenses. Starting July 2007, unionized and select non-union workers began contributing 1.5% of their salaries toward health benefits. Pension contribution rates increased from 5% to 5.5%, while the retirement age for newly hired public employees was raised from 55 to 60 years old, later adjusted to 62 in 2008. Additional pension reforms included tightening eligibility requirements and reducing paid holidays for state workers.

To achieve budgetary balance, Corzine reduced funding across numerous programs and local governments, including cuts impacting state universities. Rutgers University responded by raising tuition fees, eliminating certain courses and athletic teams, and enduring a net budget reduction of $30 million despite maintaining salary increases for senior faculty.

He spearheaded reform of municipal funding through an updated school finance formula enacted in January 2008. This measure provided financial relief to municipalities burdened by high school costs but limited tax bases and was subsequently upheld by the New Jersey Supreme Court in May 2009.

Corzine also promoted expanded government initiatives in health care and education, including legislation mandating health insurance coverage that was signed into law in July 2008.

In support of stem cell research funding, Corzine invested roughly $200,000 on public advertising for a 2007 ballot measure seeking authorization to borrow $450 million; despite earlier allocations totaling $270 million for such research, the referendum was ultimately defeated.

An opponent of capital punishment, Corzine signed legislation abolishing the death penalty in New Jersey—the first legislative repeal since 1965—and commuted all existing death row sentences to life imprisonment without parole. He additionally endorsed early gun control measures within the state.

Politically aligned with Hillary Clinton early on during her 2008 presidential bid, Corzine served as a fundraiser raising $1 million and co-hosted her milestone birthday event alongside prominent Democratic figures. He remained an active superdelegate until Clinton conceded and subsequently endorsed Barack Obama’s platform. Corzine also played a role in moving New Jersey’s Republican and Democratic primaries to Super Tuesday in that election cycle.

In response to the economic crisis in November 2008, Corzine introduced an economic stimulus package emphasizing increased expenditures, accelerated infrastructure projects, and corporate tax reforms; many provisions were approved by the legislature by December. In January 2009, he joined other governors advocating for $1 trillion in federal assistance aimed at states grappling with budget shortfalls amid recessionary pressures.

Government shutdown

In his effort to secure approval for the 2007 fiscal budget, Corzine encountered resistance from certain Democrats in the New Jersey General Assembly regarding his proposal to raise the sales tax from 6% to 7%. Firm on including this tax increase, Corzine responded to the legislature’s failure to meet the July 1, 2006 deadline by issuing an executive order that suspended all non-essential state operations, including highway construction projects. This shutdown persisted through July 4, resulting in the closure of casinos and other regulated sectors on July 5. Although Corzine described the shutdown as "deplorable," he refused to negotiate without the tax hike provision. Some observers speculated that shutting down casinos was intended to pressure legislators from South Jersey to resolve the stalemate.

After six days of impasse, Corzine and Assembly Democrats reached a compromise to raise the sales tax to 7%, allocating the additional revenue between state funding and property tax relief. The $30 billion budget was subsequently approved by both legislative chambers and signed into law on July 8, 2006, bringing the shutdown to an end.

Toll hike plan

Originally against the privatization of the New Jersey Turnpike, Corzine unveiled in January 2008 a comprehensive four-point strategy aimed at resolving structural budget deficits. This included reducing expenditures, proposing a constitutional amendment requiring voter consent for state borrowing, issuing an executive order prohibiting reliance on one-time revenues for budgets, and advancing a contentious $38 billion lease of toll roads—encompassing both the Garden State Parkway and Turnpike—to a public benefit corporation. This corporation would finance its operations by issuing bonds secured by future toll revenues, with tolls potentially increasing by 50% plus inflation every four years starting in 2010. Although Corzine initially targeted legislative approval by March, he postponed releasing detailed information for nearly a month.

The plan encountered significant public backlash, with many residents criticizing it as an attempt to shift debt burdens onto commuters while exacerbating financial strain and increasing the state's already substantial $32 billion debt. Corzine later admitted that he underestimated the intensity of public opposition and acknowledged that he should have better anticipated and addressed major criticisms.

Carla Katz

Corzine met Carla Katz in 1999 during his campaign for the United States Senate. At that time, Katz was president of Local 1034 of the Communications Workers of America (CWA), representing numerous New Jersey state employees. Though Katz declined an offer to work on Corzine’s Senate campaign, they began a romantic relationship in 2002 after Corzine separated from his wife. Katz resided with Corzine in Hoboken until August 2004.

Following their separation, Katz received a settlement exceeding $6 million, which included cash (part of which was used to purchase a $1.1 million condominium in Hoboken), a college trust fund for her children, a 2005 Volvo SUV, and forgiveness of a $470,000 loan from Corzine. In 2004, Katz enrolled at Seton Hall University School of Law on a full scholarship. Corzine also confirmed providing $15,000 to Katz’s brother-in-law, Rocco Riccio—a former state employee who resigned amid controversy. At that time, Katz led CWA Local 1034, which represents many state workers in contract negotiations.

During the 2005 New Jersey gubernatorial election, their past relationship and financial arrangements became public knowledge. Despite this revelation, Corzine won the governorship. In 2006, amid contract negotiations between his administration and major state employee unions—including the CWA—Katz advocated for renewed discussions with Corzine. This raised concerns about potential conflicts of interest given their history and settlement agreement. However, a state ethics commission ruled in 2007 that Katz’s communications with Corzine did not breach the governor’s code of conduct.

Separately, Tom Wilson, chairman of the New Jersey Republican State Committee, filed suit seeking disclosure of all e-mails exchanged between Corzine and Katz during contract talks. A trial court initially ordered release of at least 745 pages of correspondence in 2008 but this decision was overturned upon appeal. The dispute proceeded to the New Jersey Supreme Court, which declined to review it in 2009, effectively ending efforts to make the emails public. Corzine expended roughly $127,000 in taxpayer funds to maintain their confidentiality. Nevertheless, in 2010 The Star-Ledger published 123 e-mails revealing extensive personal exchanges during early 2007 negotiations.

Appointments

While campaigning for governor, Corzine retained his U.S. Senate seat, enabling him to resign and appoint a Democrat if victorious or to keep his seat if he lost. Speculation surrounded potential appointees from New Jersey’s congressional delegation, including Rob Andrews, Rush Holt, and Frank Pallone. After securing the governorship, Corzine considered State Senator Nia Gill for the Senate vacancy, commending her qualifications. Gill expressed confidence in her suitability for the role. Corzine also suggested appointing then-Governor Richard Codey, who declined the offer. Ultimately, on December 9, 2005, Corzine appointed U.S. Representative Robert Menendez, a close friend and neighbor, as his successor.

Among Corzine’s initial appointments was Zulima Farber as New Jersey Attorney General. She served approximately seven months before stepping down amid an ethics inquiry concerning her involvement in a police stop of her boyfriend for traffic violations. Corzine did not request her resignation.

On February 9, 2006, in response to financial misconduct at the University of Medicine and Dentistry of New Jersey (UMDNJ), Corzine nominated Robert Del Tufo—former New Jersey Attorney General and U.S. Attorney—as chairman of UMDNJ’s board of trustees. He also named Oliver Quinn, vice president and chief ethics officer at Prudential Financial, as vice chairman.

Lisa P. Jackson, who served as Corzine’s commissioner of the Department of Environmental Protection and Chief of Staff, was nominated and confirmed as administrator of the United States Environmental Protection Agency on January 22, 2009.

Motorcade accident

On April 12, 2007, Corzine and his 25-year-old aide Samantha Gordon were injured in a vehicle collision on the Garden State Parkway near Galloway Township. They were returning from the New Jersey Conference of Mayors in Atlantic City to Corzine’s home in Princeton, where he planned to meet with radio host Don Imus and the Rutgers University women's basketball team.

According to the New Jersey State Police, Corzine’s SUV—operated by a state trooper with emergency lights activated—was traveling over when a pickup truck veered onto the shoulder before abruptly swerving back into its lane. Another pickup truck swerved to avoid this vehicle but collided with Corzine’s SUV, which then struck the guardrail. The driver of the initial pickup was identified through roadside cameras and E-ZPass data but faced no charges.

Corzine and the trooper were airlifted to Cooper University Hospital in Camden, a Level I trauma center. The aide was transported by ambulance to Atlantic City Medical Center. While neither the trooper nor aide sustained severe injuries, Corzine suffered multiple fractures including an open fracture of his left femur, eleven broken ribs, a fractured sternum and collarbone, vertebral fractures, and facial cuts requiring reconstructive surgery. Notably, Corzine was not wearing a seat belt; aides noted he seldom used one and was "not always amenable to suggestion." The State Police Superintendent indicated that charges against the trooper could be considered if the crash was deemed preventable.

By April 23, 2007, Corzine’s condition had improved from critical to stable. Sedated and intubated, he was unable to fulfill gubernatorial responsibilities. Under provisions of the New Jersey State Constitution, Senate President Richard Codey acted as governor from April 12 until May 7, 2007. Although voters had approved establishing a lieutenant governor position in 2005 for such situations, it would not be occupied until 2010.

Corzine was discharged from the hospital on April 30 and convalesced at Drumthwacket, utilizing a videoconferencing system (installed at his own expense) to maintain communication with lawmakers. He issued a public apology, paid a $46 fine for failing to wear a seat belt, and participated in a public service announcement promoting seat belt usage that began: "I'm New Jersey Governor Jon Corzine, and I should be dead."

It was confirmed that Corzine would personally assume responsibility for his medical bills rather than relying on taxpayer funds.

Public opinion

At the start of his tenure, Corzine experienced solid approval ratings. A March 2006 Fairleigh Dickinson PublicMind Poll indicated that 47% of New Jersey voters supported his performance, while only 16% expressed disapproval. Peter Woolley, the PublicMind director, remarked that these figures were impressive given the unprecedented budgetary challenges faced. However, by April 2006, approval had declined to 39%, with disapproval rising to 36%. Despite ongoing budget disputes and a sales tax increase, approval ratings rebounded in July and September 2006, reaching 51%. Throughout 2006 and 2007, Corzine maintained an average approval rating of 54%, with disapproval around 29%.

Prior to his State of the State address in January 2008, Corzine’s approval stood at 48%, with disapproval at 32%. Following the speech, his popularity dropped to 41% approval and 39% disapproval, largely influenced by his proposal to increase tolls on the New Jersey Turnpike and Garden State Parkway. February polls reflected a continued downward trend, with approvals at 42% and disapprovals at 43%. Woolley noted that despite criticism regarding the toll plan, Corzine’s numbers did not deteriorate further. Approval stabilized near these levels through September 2008 but showed some improvement during the presidential election period.

By January 2009, Corzine’s approval rating was at 46%, with disapproval at 40%. Woolley observed that Corzine was managing reasonably well amid escalating budgetary pressures. Nevertheless, by March 2009, as economic difficulties intensified, approval slipped to 40%, while disapproval increased to 43%. In April, during persistent budget conflicts and the ongoing financial crisis, approval remained steady at 40%, but disapproval climbed to 49%. At the conclusion of his term in January 2010, Corzine’s approval reached its lowest point: only 33% approved him while disapproval soared to 58%.

Philanthropy and academia

Corzine has actively contributed to philanthropic and civic initiatives, holding board positions with Covenant House and the New Jersey Reentry Corporation. His civic engagement also includes board memberships with the New Jersey Performing Arts Center, the New York Philharmonic, the New York Child Study Center, and the NYC Partnership. He has occupied leadership roles such as co-chair of President Clinton’s National Commission on Capital Budgeting, chairman of the Treasury Department's Government Borrowing Committee, and Chairman of the Public Securities Association.

In academic circles, Corzine served on the board of trustees at the University of Chicago and acted as an ex-officio trustee at Princeton University. He held the position of J.L. Weinberg Visiting Professor of Public Policy at Princeton during 2010 and 2011. Presently, he leads an advisory board at Fairleigh Dickinson University tasked with developing a graduate school for public and global affairs and lectures on politics and public policy at Fairleigh Dickinson's Wroxton campus in the United Kingdom.

MF Global

In March 2010, Corzine assumed the roles of CEO and Chairman of MF Global, a multinational brokerage specializing in futures and bond trading.

By late October 2011, MF Global's stock value had fallen by approximately two-thirds, accompanied by a downgrade to high-yield credit status following substantial quarterly losses. On October 31, trading was suspended prior to market opening as MF Global filed for Chapter 11 bankruptcy protection. Subsequently, federal authorities initiated an investigation into hundreds of millions of dollars missing from customer accounts. Corzine stepped down as CEO on November 4, having engaged defense counsel Andrew J. Levander. He declined a severance package valued at $12.1 million. The collapse ranked among the ten largest bankruptcies ever recorded in U.S. history.

On December 8, 2011, Corzine was subpoenaed to testify before a House committee concerning $1.2 billion missing from client funds. He stated he was unaware of the funds' whereabouts or why account reconciliations were incomplete and denied authorizing any misuse of customer assets. In March 2012, Bloomberg reported on a memo related to a $175 million transfer under scrutiny; early reports implied Corzine’s involvement but this was later disproven. The transfer was identified as a "House Wire"—a movement from MF Global’s own account intended to cover overdrafts with JPMorgan Chase. Corzine never authorized customer funds for this purpose and had been assured that the transfer complied with regulations. Court documents confirmed these facts. By November 2013, all MF Global customers were anticipated to receive full reimbursement following completed distributions.

In June 2013, the Commodity Futures Trading Commission (CFTC) filed civil charges against Corzine alleging misuse of customer funds and inadequate supervision based on recorded telephone conversations. His legal representatives disputed these allegations.

Later in 2013, Corzine and other company executives appealed a court decision related to repayment claims made by customers. A spokesperson clarified that their appeal concerned how claims were processed by the trustee after payments had been made rather than any delay in reimbursing customers themselves. Ultimately, all customers received full repayment.

On January 5, 2017, Corzine reached a settlement with the CFTC agreeing to pay a $5 million fine for his involvement in MF Global’s failure and accepting a permanent prohibition from employment with futures commission merchants or registration with the CFTC in any role.

Personal life

At the age of 22 in 1969, Corzine wed his high school girlfriend, Joanne Dougherty. The couple had three children together: Jennifer, Josh, and Jeffrey. They separated in 2002 and finalized their divorce in November 2003. Tragically, his younger son Jeffrey died by suicide in Mexico at the age of 31 in March 2014.

Prior to their separation, Corzine resided in Summit, New Jersey, later relocating to a condominium located in Hoboken, New Jersey.

In April 2010, Corzine became engaged to psychotherapist Sharon Elghanayan (née Levine), with whom he had been in a relationship since 2004. Their marriage took place on November 23, 2010, officiated by Chief Justice of the New Jersey Supreme Court Stuart Rabner. Elghanayan holds degrees from both Rutgers University and New York University.

External links

Corzine for Governor official campaign website
Profile at SourceWatch
The Deal He Made, Craig Horowitz, New York Magazine, July 10, 2005

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