Wednesday, 1 October 2014
Last updated 13 hours ago
Jun 28 2013 | 12:15pm ET
After he was cleared of criminal wrongdoing in the collapse of MF Global, the futures brokerage's former CEO mulled launching a hedge fund. But Jon Corzine now faces civil charges that could keep him from doing so.
The Commodity Futures Trading Commission yesterday filed suit against the former New Jersey governor and senator, accusing him of negligence in running MF Global, which went into bankruptcy in 2011 after more than $1 billion in client money went missing. The regulator wants Corzine, who is also a former Goldman Sachs chief, barred from the financial industry.
The CFTC suit alleges that Corzine failed to supervise MF Global's officers, employees and agents. "He held and exercised direct or indirect control over MF Global and Holdings and either did not act in good faith or knowingly induced these violations," the CFTC said in its complaint, which also names former MF Global Assistant Treasurer Edith O'Brien.
For its part, MF Global itself settled the CFTC charges, agreeing to pay $1 billion in restitution and $100 million in fines.
"This unprecedented lawsuit based on meritless allegations that Mr. Corzine failed to supervise an experienced back-office professional who was located in a different city and who did not report to Mr. Corzine or even to anyone who reported to Mr. Corzine," Corzine's lawyer, Andrew Levander, said, referring to O'Brien. "No evidence has been found that contradicts Mr. Corzine's sworn testimony before Congress."
The CFTC is seeking disgorgement and penalties from Corzine in addition to the trading ban.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...