Corzine Says Volcker Rule ‘Not Attacking The Problem’

Jun 11 2010 | 11:28am ET

Just three months into his new job at the head of the Man Group’s former futures brokerage, former New Jersey Gov. Jon Corzine told a group of hedge fund managers that he opposes part of the controversial Volcker rule, which would bar banks from the alternative investments industry.

“The idea of prohibiting prop. trading or to spin off derivative books is not attacking the problem, because it is virtually impossible to separate prop capital from client capital,” the MF Global CEO told a Chicago meeting of the Managed Funds Association, a hedge fund lobbying group. “The troubling part is, if we get too aggressive,” some financial firms might move offshore.

Still, Corzine, a Democrat, said he is “more in favor of financial reform than if we did nothing or a lot less," Investment News reports.

The Volcker rule, one the key battlegrounds in the ongoing House of Representatives-Senate conference over the financial regulation reform bill, would ban bank holding companies from proprietary trading. It could also bar them from owning, investing in or sponsoring a hedge fund or private equity fund.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note