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

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...