MF Global Holdings Ltd. (MF), an investment brokerage company, announced Tuesday the appointment of Jon Corzine as chairman and chief executive officer, effective immediately. He succeeds Bernard Dan, who resigned as chief executive officer for personal reasons, but will remain with the company through May 16, 2010 to facilitate a smooth transition of duties. Shares of MF Global rose by over 8% in after hours trading.
Additionally, the company said Alison Carnwath will be retiring from the board at its next shareholders' meeting in August 2010, having fulfilled her three-year commitment to the company. Looking ahead, the company also provided a lower-than-expected revenue guidance for the fourth quarter.
Corzine has served as governor of the state of New Jersey from 2006 to 2010, and in the United States Senate from 2001 to 2006. He served on the Senate Banking, Budget, Energy and Natural Resources, Environment, Foreign Relations and Intelligence Committees. He became New Jersey's 54th governor in January 2008.
Prior to entering public service, Corzine was chairman and senior partner of Goldman Sachs, where he served for 24 years. During his tenure, he led Goldman's fixed income division, worked to build the firm's significant footprint in Asia served as its chief financial officer. He became senior partner of Goldman Sachs in one of its most difficult periods in 1994, and quickly re-established the firm's position of profitability and reputation, ultimately taking the company public in 1999.
Looking forward to the fourth quarter ending March 31, 2010 MF Global expects net revenues to be in the range of $235 million to $245 million. Currently, seven analysts expects revenue of $260.61 million for the fourth-quarter. The company also said it intends to release earnings results in mid-May.
MF shares closed at $7.32, up $0.15 or 2.09%, on a volume of 3.44 million shares on the NYSE. In after hours, the stock traded at $7.95, up $0.68 or 9.29%.
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