Thursday, December 08, 2011
Jon Corzine
In the wake of the MF Global controversy, the Commodity Futures Trading Commission has adopted new regulations that limit how futures brokerages handle their customers’ money.
The new rules ban firms from borrowing client money through the use of repurchase agreements and from investing customer money in foreign sovereign debt. Federal regulators suspect MF Global may have improperly used client funds, resulting in the firm losing $1.2 billion out of $5.4 billion belonging to customers. A government investigation is ongoing.
MF Global, once run by former New Jersey Democratic Governor and Senator Jon Corzine, has declared bankruptcy. Corzine is also a former Goldman Sachs CEO.
Two former employees have filed a class-action lawsuit against Corzine and other executives for lying about the company’s financial health in order to boost its stock price.
–Noel Brinkerhoff
Jon Corzine-Style Deals Banned by CFTC (by Josh Boak, Politico)
The MF Global Money Chase (by James O’Toole, CNN Money)
Government Orders Audits of All Futures Trading Firms (by Noel Brinkerhoff and David Wallechinsky, AllGov)
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