“A U.S futures-market regulator said it will block Jon Corzine, the former chief executive of failed broker MF Global, from the industry unless he clears an investigation into his fitness as a participant.
However, the National Futures Association, which oversees brokers and asset managers, rejected a proposed lifetime ban for Corzine for now.
Publicly available information “raises issues” about Corzine’s fitness for membership, NFA Chairman Chris Hehmeyer said in a statement after a board meeting in Chicago.
Corzine, whose NFA membership has lapsed, will not be granted membership “unless NFA, after completing its fitness investigation, resolves those issues to its satisfaction,” Hehmeyer said.
MF Global failed in October 2011 after dipping into customer accounts in violation of industry rules, leaving a $1.6 billion hole in its customers’ accounts and shaking confidence in the futures industry.
No one has been charged in MF’s collapse, although U.S. congressional investigators have determined that Corzine failed to maintain the systems and controls necessary to protect customer funds….”
