LIVE FEED UPDATE: CFTC’s Gensler Testifies to Senate Ag

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Note: Post updated to include CCC live tweets of hearing.

CFTC Chairman Gary Gensler testified this morning before the Senate Committee on Agriculture, Nutrition and Forestry.  Although the hearing was organized as a review of the implementation of the 2010 'Dodd-Frank' and Consumer Protection acts, Mr. Gensler's verbal testimony included comments on PFGBest.  The CFTC Chairman will certainly face questioning from committee members on the failure of regulators to detect the alleged 20 year fraud at PFGBest.

Live Video Feed

 Live Audio Feed 

Chairwoman Debbit Stabenow Opening Statement

The hearing will consist of the following two panels of witnesses:

Panel I

  1. Hon. Gary Gensler
    Commodities and Futures Trading Commission
    Washington , DC
    Written Testimony
    Note: verbal statement was much different than submitted written testimony
  2. Mr. Robert Cook
    Director, Division of Trading
    Securities and Exchange Commission
    Washington , DC

Panel II

  1. Mr. Robert Pickel
    International Swaps and Derivatives Association
    Washington , DC
  2. Mr. Thomas Erickson, on behalf of the Commodity Markets Council
    VP of Government Affairs
    Bunge North America
    St. Louis , MO
  3. Mr. Larry Thompson
    Managing Director and General Counsel
    The Depository Trust & Clearing Corporation (DTCC)
    New York , NY
  4. Mr. Dennis Kelleher
    President and CEO
    Better Markets
    Washington , DC

The Senate's Committee on Agriculture, Nutrition and Forestry also plans a hearing August 1, 2012 on MF Global.  CCC Co-Founder John L. Roe is scheduled to testify at that hearing.

CCC Live Tweet Transcript of Event (sorted most recent tweet first):


@SenPatRoberts to Gensler: your intergalactic plan (cross border regs) could take markets over cliff--'dancing on head of pin' on statements

Gensler on Dodd-Frank implementation: process is proposal-->public comment-->rule making. #CCC sees FCM reform taking the same tack @CFTC.

@JohnBoozman when there is uncertainty in market regulation, there is uncertainty throughout entire economy

Gensler: Congress asks us to write 60 rules, we get 33,000 comment letters, hold round tables, 2 law suits against us--change takes time.

@amyklobuchar: is NFA up to task ask front line regulator of FCMs? Gensler: yes we're adding to NFA's duties, including swaps-we will review

@CFTC Gensler to @amyklobuchar: customers should have same transparency the securities customers have with respect to how $ is invested

@CFTC Gensler repeats 'examine the examiners' theme; must review processes at @nfa@CFTC and independent auditors.

@CFTC Gensler: auditors understand things in 'paper world', need to update to electronic means

@SenatorHarkin blasts House appropriations for proposing to cut@CFTC budget, Gensler: move will create more 'mayhem' in markets.

@SenatorHarkin questioning idea of self-regulations. Does @CFTC have adequate personnel for oversight? Gensler defends self-regulation.

JohnLRoe@JohnLRoe@CFTC Gensler also cites need to "examine the examiners"--for the regulators to examine practices of auditors charged with checking FCMs.

Gensler cites Feb @CFTC round tables: c-suite approval for excess seg, elimination of alt method for 30.7, daily elec access to bank accts.

@CFTC Gensler on #PFGBest: regulators must have direct electronic access to all custodial accounts at FCMs.


@CFTC Gensler on #PFGBest: 'just like police cannot prevent all bankruptcies, regulators cannot prevent all fraud'


#MFGlobal Customers

Are you a customer of MF Global? The CCC formally represents more than 200 clients in the bankruptcy process of MF Global on a pro bono basis, and informally represents thousands more in the public domain.

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About John Roe 86 Articles
Co-Founder of the CCC and head of BTR Trading and Roe Capital Management.

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