Corzine Starting a Hedge Fund? Outrageous, Maybe, but Not Unprecedented

Topping that list is John Meriwether, the former head of the collapsed Long-Term Capital Management. So entwined was the firm with major players in the U.S economy that when it imploded, it almost set off a chain reaction that would bring much of the world with it. It eventually received $3.6 billion in government backing. But as Forbes notes, rather than slink away, Meriwether later founded other hedge funds including JWM Partners. When that hedge fund suffered heavy losses in the financial crisis, he simply shut its doors and started yet another.

Barry Minkow, a convicted felon who went to jail for conducting a $100 million Ponzi scheme during the 1980s, rejoined society after serving 25 years in jail. Like Frank Abagnale Jr., of “Catch Me If You Can” fame, Minkow sought redemption by working as a detective helping the FBI and SEC identify financial fraud. Last year, he was sentenced to another prison term for securities fraud.

Although it’s still a rumor at this point, people are already lining up to give Corzine his 2 and 20.

Quoting Business Insider, Forbes notes that Anthony Scaramucci, who founded the hedge fund SkyBridge Capital and worked under Corzine at Goldman, seems to have no qualms with handing over money to his disgraced former boss. “Yes, I trust Jon Corzine,” he told Business Insider, “and think if he starts a fund he will make money and be very successful.”