"He [Corzine] doesn’t need to be near anyone’s money ever again in the futures space,..."

[ by Melanie Gretchen ]

Jon Corzine may be permanently banned from the futures market by the close of business, Thursday, 2/21/13.  Two newly-elected directors of the National Futures Association ("NFA") will present the motion and ask for the Board's support on this matter.  Mr. Corzine served as Chief Executive of MF Global which not only imploded under the weight of very large and very risky market bets, but also breached the sanctity of customers' segregated funds - causing the loss of up to $1.6 billion. 

The directors, John Roe and James Koutoulas, are no strangers to Corzine.  The newly minted directors, who were cast as 'dissident candidates' and voted onto the Board in January, have helped recover money for MF’s jilted customers.  In their new roles, they and a 3rd newly-elected 'dissident director' plan to use their leadership to drive their first action at the regulator.

"He [Corzine] doesn’t need to be near anyone’s money ever again in the futures space, and we want to make sure of it." -- Mr. Roe, who co-founded the Commodity Customer Coalition with Mr. Koutoulas.

In their 5-page proposal... the directors asked the board, set to meet in Chicago tomorrow afternoon, to direct NFA to set up a panel to evaluate whether Corzine violated the agency’s rules by failing to supervise MF employees and through sloppy record-keeping.  The NFA, the industry's self-regulatory agency, is tasked with which individuals and firms can deal in futures.

If passed, the ban would limit his ability to trade futures in any fund with outside investors, and hinder his ability to raise money from pension funds and other large investors.  As such, it would be unlikely he would go ahead with reported plan to launch a hedge fund.  In addition, NFA rules would require Corzine to pay up to $250,000 for each of 9 violations, or as much as $2.5 million, Mr. Koutoulas said.

That amount would go to the MF state, expected to restore most of the once-gloried law firm's U.S. customers 93% of their money.  The money would go to the MF estate, which is on track to return to most of MF’s US customers 93 percent of their money.

"The NFA has issued 134 lifetime bans since 2008.  Corzine has done more damage to the industry than all of them combined." -- Mr. Koutoulas.

For further details, go to [NY Post, 2/20/13].  

For details about their election onto the NFA Board, go to:  [Behind The News 2/20/13 post, "Dissident Candidates Elected.."]