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Gasparino: Dodd-Frank’s Big Fail

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  • Description

    FBN's Charlie Gasparino with the latest subcommittee hearing on the MF Global meltdown.

  • Duration 4:41
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Conclusions.

Of its own on how things went downhill.

Charlie Gasparino has the latest details Charlie I am so glad that you're holding on to this story because this is an important one -- if it's bottom up.

Right Jon Corzine former US senator former security governor former Goldman Sachs chairman and you know lots of bad stuff went down -- I think criminal -- bad but as you know one point two.

Billion dollars of customer money.

Still missing joke about what this story today it's never going to be big probably ever going to be -- a lot of that money you we should I should point out to our viewers that in December.

I reported it is essentially the same -- that -- this money's probably gone for good.

That we get it did decrease slightly -- -- but let's just have focused on this subcommittee hearing and this is vast financial services subcommittee on investigations.

And here's what we know right now they didn't look at at this staying for about I would say about about six weeks.

I am based but they tell the -- speak people close to the committee -- -- Fox Business Network they plan to issue a report sometime probably in the coming weeks.

About the debacle and how it went down that one of the interest -- think about the report that they will focus side.

Is what they believe with the committee members believe that the people investigating is that they are investigating -- -- at -- lots of records thousands of pages of records.

Lack of coordination between the SEC.

At this fifty.

That's the securities and exchange commission and the commodities futures trading commission and this is a lack of coordination somebody read bankruptcy -- implosion efforts.

That went on at the SEC.

As he had obviously looked at -- global -- implosion basically told them to raise more capital prodded -- to raise more capital.

Because of their exposure to European debt that could.

That that debt that was that was start to get it go to trouble.

And what the committee is fighting is that the CFTC.

Appeared out of hope that the best way to describe right now because we're waiting for comments from the CFTC.

Exactly what they -- do what they do about to get.

Efforts but out of the loop I the SEC's push.

-- more capital to be raised by -- as well that would interest in about this.

If that was the -- sort of preliminary findings from the committee is that this lack of coordination is a big failure.

Of the Dodd-Frank -- remembered there's something called the -- this stability council its financial commodity I can't remember the exact name eludes me right now.

But there's -- stability council that supposed to be in between these various agencies under Dodd-Frank.

To basically tell them -- -- you know coordinate your efforts -- this big obviously did not work so that's what we are right now yeah we should point out that this week's hearing.

Is gonna look at some of the risk management -- Are coming out of as and that will look at these -- sort of the preliminary Charlie I think that would debt yes.

Let me actually you know if money was co -- and then it disappeared which seems -- -- what's the penalty for that.

It depends -- -- -- here's why did get there is that I I I post the stock might Twitter page and I get People's Daily what -- people go to jail.

We should point out that -- go to jail unless they are.

I would stay up they knowingly violate the -- about -- a name that was -- to be.

Before is the financial stability stability oversight council which is supposed to Bordick -- to.

And you know.

You know unless you can prove that somebody.

Act act at MF global.

-- they were violating -- -- when they were using that money or for other purposes member there was a run on the bank they had people to pay off.

If creditors to pay off.

You know the -- to -- -- squishy it's not black and white beard and want to do we know you could setup a UK subsidiary.

If you do that you can transfer money to the UK subsidiary is doing that you can borrow that money that money beating the customer money.

It's a lot looser than it -- it -- the US.

The real question is where with the regulators on days I've been very critical of the CME.

-- you know my view is.

That if you're -- -- exchange.

You should be it'd be well there's the -- you -- a problem there yeah and it was this was not like Bear Stearns where it was like 44 hours basically people who up.

The state was -- we on the -- does that work.

Reported some of the run on the bank but that goes equally for the regulators -- -- why -- CFTC.

In the office.

Yeah that we're gonna get some of that which is reportedly.

All right Charlie will bring -- it just as soon as you haven't we appreciate you staying on the story it's an important one thank you -- thank.

Not a lot of progress from debt negotiations with Greece -- country be shown the eurozone exit soon up next.

A look at how Greece's future -- bondholders and banks around the world we'll be right back.

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