Are you a customer of PFGBest? The CCC is working with regulators and monitoring the court on behalf of PFG customers. At this stage, we are advising customers to gather their statements and prepare for a claims or account transfer process.
Stay tuned to our website for more information.
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:
- Hon. Gary Gensler
Commodities and Futures Trading Commission
Washington , DC
Note: verbal statement was much different than submitted written testimony
- Mr. Robert Cook
Director, Division of Trading
Securities and Exchange Commission
Washington , DC
- Mr. Robert Pickel
International Swaps and Derivatives Association
Washington , DC
- Mr. Thomas Erickson, on behalf of the Commodity Markets Council
VP of Government Affairs
Bunge North America
St. Louis , MO
- Mr. Larry Thompson
Managing Director and General Counsel
The Depository Trust & Clearing Corporation (DTCC)
New York , NY
- Mr. Dennis Kelleher
President and CEO
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 @JohnLRoe
@SenPatRoberts presses Gensler on @CFTC customer protections proposals--when did they get final recommendations for response to #MFGLOBAL?
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
@JohnBoozman: we are focused on core mission as market regulator
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.
@CFTC Gensler to @johnthune, #PFGBest like a bank robber-it's human nature to defraud, mush have enough cops on the beat to protect customer
@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
@amyklobuchar why didn't @CFTCconfirm bank balances in Jan audit? Gensler dodges, auditors were lied to in December
@amyklobuchar cites #MFGLOBAL to #PFGBest customer letter 'your job is to prevent fraud', protect seg balances--why are their failures?
@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 chides @ChuckGrassley, I'm not participating in #MFGLOBAL, we've had some good public comments between you and me on that...
@CFTC Gensler: auditors understand things in 'paper world', need to update to electronic means
@ChuckGrassley why did #PFGBestauditors not check with bank for 20 years? Gensler: 'yes', checking with bank is cornerstone of audit
@SenatorHarkin 'troubling events' LIBOR fixing, JPM whale trader, #MFGLOBAL / #PFGBest support need for Dodd-Frank.
@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.
@SenatorHarkin finds it hard to believe only 1 person responsible for #PFGBestfraud, astounded that it went on for 2 decades undetected.
@CFTC Gensler's complete written testimony submitted to @SenateAg:cftc.gov/PressRoom/Spee…
@CFTC Gensler has distributed recommendations on #MFGLOBAL / #PFGBest to Senators--will tweet when posted.
@SenPatRoberts to Gensler: did you redirect funds meant to be used to update @CFTC technology?
@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.
@StabenowPress to Gensler: farmers ask her if they should continue to use markets? What is @CFTC doing?
@CFTC Gensler statement to @SenateAg on #PFGBest very brief. @SEC Cook testifying now. Gensler will be questioned when Cook finishes.
@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'
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.
Get the latest news on #MFGlboal.