Sunday, December 4, 2011
Johnny makes a weird selection
From the Daily News:
For the umpteenth time lately, the question must be asked: What was city Controller John Liu thinking?
If he was thinking at all.
Wonder arises anew with the discovery that Liu hired a Wall Street macher named Kevin Davis to a $175,000 position advising the city pension funds on commodities.
Davis was sacked in 2008 because his firm, MF Global, dropped 90% in market value after a rogue trader lost $141 million speculating on wheat futures. That bad bet blew huge holes in four municipal pension funds.
Though none of that money was from New York, the retirement fund connection makes Liu’s hiring of Davis especially head-scratching.
If the name MF Global sounds familiar, it’s because that’s the firm later taken over by former New Jersey Gov. Jon Corzine, who then oversaw its total implosion. None of Corzine’s failures, it must be said, have anything to do with Davis.
But Davis has his own — and that makes him a bizarre choice to advise the city’s $120 billion employee pension funds.
And thus, the long list of Liu missteps grows.