Tue, Nov 25, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Opalesque Futures Intelligence

The Untold Story: NFA Board Holds Off Lifetime Ban On Jon Corzine... For Now

Friday, March 15, 2013

By Mark Melin

In a meeting on February 21, the National Futures Association Board of Directors did not immediately act on a motion to ban former MF Global CEO Jon Corzine for life, but left open the possibility for the self regulator take action after ongoing investigations by government agencies are complete.

"Once the appropriate agencies have completed their investigations, NFA has the authority to bring disciplinary action against Mr. Corzine for violations of any NFA rules that occurred while he was a member," according to a statement from the NFA. "The sanctions for disciplinary actions could include a lifetime ban and significant monetary fines."

While published reports noted Mr. Corzine was no longer a member of the NFA, materially he was a member during the time criminal activity occurred at MF Global.

"The Board notes that Mr. Corzine is not currently a member of NFA. The Board is aware of publicly available information that raises issues concerning Mr. Corzine's fitness for NFA membership," the statement said, likely alluding to the fact that information in the public domain that points to criminal activity. "If Mr. Corzine applies for membership in the future, he will not be granted membership unless NFA, after completing its fitness investigation, resolves those issues to its satisfaction."

Going into the meeting, popular support indicated potential for board members to approve the measure. The measure was brought by Commodity Customer Collation co-founders and newly elected NFA Board members James Koutoulas and John Roe, who were fulfilling a campaign pledge to bring the issue to a vote.

At the time of the meeting speculation indicated the NFA board had mixed feelings about the proposal. The point of the proposal was to bring accountability to criminal actions that appeared to be eluding investigation. While damage done to the commodity markets has been significant, the validity of the MF Global investigation had always been questioned by knowledgeable industry participants. This suspicion is due, in part, to sources close to the investigation being quoted in several news stories diminishing prospects of an investigation, saying the "case was cold" before the primary suspects, MF Global executives, had been questioned and while clear indications of criminality existed in the public realm. Arguments that weighted against the motion likely included jurisdictional issues with other regulatory agencies and interference with ongoing investigatory efforts, analysis first reported the day of the meeting.



 
This article was published in Opalesque Futures Intelligence.
Opalesque Futures Intelligence
Opalesque Futures Intelligence
Opalesque Futures Intelligence
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - George Soros puts $500m of his money on Bill Gross, Soros, Paulson backed Hispania Activos mulls Realia takeover, Ex-Credit Suisse trader’s hedge fund sees yen shorts as crowded, Hedge hunters double default-swaps as views split, Large hedge fund positions come under pressure, Vikram Pandit's fund picks 50% stake in JM Financial's realty lending arm for $87m[more]

    George Soros puts $500m of his money on Bill Gross From WSJ.com: Before Bill Gross was fully settled in at his new firm, Janus Capital Group Inc., he received an unlikely visit from the chief investment officer of famed investor George Soros ’s firm, according to a person familiar with t

  2. Greenlight Re CEO says hedge fund reinsurance strategy buzz is validating[more]

    From Artemis.bm: The attention being paid to the hedge fund reinsurance business model and the fact that others are now looking to leverage bits of it within their own strategies, is validating for reinsurer Greenlight Capital Re, according to CEO Bart Hedges. There has been an increasing buzz

  3. Legal - Hedge fund manager fights £8m tax tribunal ruling[more]

    From FT.com: A hedge fund manager who may have to repay £8m in tax is trying to overturn a tribunal ruling that found he had attempted to shelter millions in an avoidance scheme. Patrick Degorce, chief investment officer at Theleme Partners, lost a tax tribunal case last year. HM Revenue & Customs c

  4. Europe - Hedge funds face exit tax as Iceland central bank discusses plan[more]

    From Bloomberg.com: Hedge funds and other creditors with claims against Iceland’s failed banks face an exit tax as the island looks for ways to unwind capital controls without hurting the economy. The government targets having a plan it can present by year-end that would map out how Iceland will sca

  5. Hedge fund Oceanwood raises $2bn, to close to new investors[more]

    From Reuters.com: Europe-focused hedge fund Oceanwood Capital Management is closing its fund to new investors after its assets under management hit $2 billion (1 billion pounds) recently, a source with direct knowledge of the matter said. Oceanwood, a multi-strategy hedge fund spinout from Tudor Gro