'CME Group Directors Sue Corzine, Former MF Executives'

W

Wallace

by JACOB BUNGE
"The vice chairman of CME Group Inc. is suing former MF Global Holdings Ltd.
Chief Executive Jon Corzine, adding to the tension between the world's largest
futures exchange and what was formerly one of its largest customers.
Mr. Corzine is among the former MF Global executives named in a suit filed by
CME Vice Chairman Charles Carey and fellow CME director Joseph Niciforo,
along with several other Chicago-area traders, alleging that the failed company
improperly handled accounts of those traders and Mr. Carey's and Mr. Niciforo's
trading firm, which is independent of CME.
The suit was filed in U.S. court for the Northern District of Illinois on Dec. 8, but
has yet to draw much notice among the flurry of legal action aimed at Mr. Corzine
and MF Global." - more:
http://online.wsj.com/article/SB10001424052970204026804577100680967560376.html
 
The link I cited no longer works.

I am surprised that they would honor any commitments made by the Trust given their unfortunate decision in 2005.

From: http://www.reuters.com/article/2011/12/18/us-cme-mfglobal-charity-idUSTRE7BH00E20111218


"CME Group will continue to honor some previous Trust commitments going forward - even after the $50 million is paid out," CME spokeswoman Laurie Bischel said. "Though the CME Trust will be used to help customers of MF Global, CME Group remains committed to our communities and will continue to provide support to charitable organizations as possible through our other programs and corporate foundations."

She declined to specify the overall level of future grants and it is unclear if other programs could partially or fully make up the loss of the Trust's contributions. CME charitable giving has gone up and down through the years.

CME Trust was established in 1969 to provide financial assistance to customers if a brokerage became insolvent.

Federal rules requiring brokers to keep client money separate from their own made the prospect of customers actually losing money in a broker default seem so remote that the CME's board in 2005 voted to turn the Trust into a charitable foundation.
 
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