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Corzine Accepts Prop Trading Ban in His Wall Street Resurrection

  • SEC restrictions stem from collapse of Corzine’s MF Global
  • Limits come as part of his firm’s bid for SEC registration
Jon Corzine
Jon CorzinePhotographer: Victor J. Blue/Bloomberg

Jon Corzine’s commodities firm blew up the last time he was trading on Wall Street. Now regulators want to make sure his new hedge fund doesn’t suffer the same fate.

The Securities and Exchange Commission will place a series of restrictions on the firm Corzine is using to stage a comeback, according to a June filing. The most humbling: an unusual ban on the wagering of his own capital separately from investor money. It was this kind of proprietary trading that helped sink his prior firm, MF Global Holdings Ltd., eight years ago.