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CFTC Commissioner Bart Chilton on the investigation into MF Global’s missing funds and Iran’s threat to block oil shipments in the Strait of Hormu...
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-- now tonight's market monster commissioner Bart Chilton of the commodities futures trading commission he's also written -- new book cold.
Well -- ammonium Ponzi ammonium money easy to -- it is interesting how scam artists sell ripping off America we'll get to that in a minute -- -- to thank you so much for joining us tonight.
Let's talk about oil for us we have what's going on in the Strait of Hormuz the threats from Iran.
Some say that it could.
Quite potentially double the price of oil what do you say.
Well if it doubled it.
Actually I think -- want to send a team of investigators down to that the trading floors at that would be a pretty big big deal.
-- but I do think they're probably could be some spikes.
-- a lot of confidence in that the navy's fifth fleet and that's in the British navy -- and other allies navies to keep.
Those oil gateways open.
But you know there could be some.
Temporary problematic.
Issues with regard to Iran and and we could see some spikes but I don't think they would be.
Long lived while on the other side Bob -- -- is about to kind of RAMP up its oil exports will black helped to bring the price of -- battle a little bit.
-- -- may it may be a little and you know I'm not a market expert actually -- -- that people that I respect what they say is that.
Out while it didn't have a whole lot of impact when we lost the Libyan production.
We saw some increase.
We went up to about a 114 dollars at one point but we also had the international.
Energy agency release those sixty million.
Barrels of oil as you recall last June 20 -- so that's sort of ameliorated the issue.
Ultimately though I think when you're talking about all of the -- oil.
I think I ran probably needs our oil dollars are oil revenues a lot more that we need -- -- -- oil.
But a change gears -- little -- about -- about the investigation regarding MF global anymore sign of that one point two billion dollars.
Well we've got a visual actually on a lot audits and where it went but we don't have the ultimate landing spot of all of it.
And whether or not the it was an illegal activity for some of these money trails that we're following remains to be seen.
My gut tells me actually -- -- there's potentially some a legal activity certainly nefarious activity the money's not where it should be.
And that's job one for us to get that money back remember this is customer -- People think that bought their money was safe.
And it's are going to try and find didn't get it back.
-- -- with that in mind mob wanted you to respond to some of the criticism from the senate banking committee earlier this month that basically ripped into the CFTC saying that the regulators they have failed to do their jobs and protect.
The American consumers -- to hostile do you think that's that's set.
Well it's not too harsh because you see it out either side as well -- with congress you know.
But the bottom line is sure if you put.
A regulator and every one of these future commission merchants these dealer brokers.
Like MF global you might be able to stop this stuff.
It's really actually is you know trying to find the right balance between the appropriate regulatory role and not be -- too harsh.
Mean the good news is that we haven't lost money customers haven't lost money.
You're here to -- in the futures world.
But this is a big wake up call which is why I think we need to rethink what we're doing.
I think we should have an insurance up fund for example like exist in the securities were right and in the banking world some are things we can do actually.
Well I'm with that in mind -- Libya just talk about your book pubs ammonium.
Immediate apparently you have heard stories of ten.
Ponzi scams that took place in 2009.
Alone is -- that prevalent.
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Very good advice Bob -- thank you so much for joining us tonight really appreciate it.
