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Haar Capital Management President Stanley Haar on the impact of MF Global on individual investors.
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But the senate banking committee holding another hearing today in the collapse of MF global focus -- how rules can be -- to prevent a repeat of MS.
-- -- one investor there were many who feels he was burned by MF global picked at by MF global.
Says there's one very simple thing you can do to try to prevent this from happening to you perhaps in the future.
Stanley cars president to park capital management.
He at 700000.
Dollars of his own money invested with MF global in and as I understand it you've -- about 72%.
Back.
I can only imagine as you sat in on that hearing today what you're thinking and and -- please articulate that -- -- -- frustrated or encouraged by what you heard.
She sure thank you as well they were were really didn't hear much that would be considered new information or or breaking new ground.
But I really wasn't anticipating that I mean the the title.
Of the hearing was MF global lessons learned.
In the past tense.
I guess it was what -- feel like -- kind of felt like going to your doctor's office to be treated for some disease.
And instead of coming up with a treatment plan the doctors are discussing how to do an autopsy on you I mean you know they they treated is treated it as if you know the issue can be pushed aside and and basically where do we go from here fortunately some of the senators -- senator Shelby and certainly senator Moran and a few others.
-- did use the opportunity to probe a little bit about what happened.
Course one of the key players was not there Gary Gensler who's mysteriously recused himself from answering any questions about activities and and decisions that he himself made.
In the days leading up to the to the failure of the company so it's discouraging on the other hand.
I think it's always good to be out there talking to.
Politicians are staffers -- this kind of opportunity to the public.
Because I think people need to understand this isn't just a commodity trader problem Laurie a CME problem -- a futures market problem if segregated customer accounts in major US banks like JPMorgan and Deutsche bank and -- those -- the three biggest that we're involved can be diluted with impunity.
Then really -- -- it threatens the the confidence that we should all have in the in the overall financial system.
Either -- so much of this result revolves around Jon Corzine and his role in some people.
Suggests I imagine -- one of them that that he should be more of focus of a criminal investigation.
-- it's it turns out he is still bundling money campaign money hundreds of thousands of dollars for President Obama what do you make of that.
And it's absolutely brazen Madonna -- -- wire live they would call it puts but for a guy who is who has defrauded.
Thousands of customers farmers ranchers small investors.
Let alone the damage you've done to his own employees.
Who've lost their jobs they've lost their 401K accounts they've lost their college savings plans and yet he has the energy in the time to go out raising money.
For mr.
Obama which clearly by the way creates.
Just like -- begins -- Corzine connection the Obama Corzine connection creates.
The appearance if not the fact.
Having conflicts of interest all over the place which I think deserve.
More attention in terms of investigators Stanley what should be done so that this doesn't happen again in the late late hours of October 30 -- 31.
What Charlie Gasparino has reported on its saying that that there was -- essence a run on MF global and that regulators.
Should've been in there immediately making sure that this kind of shenanigans behavior did not happen where.
Client money was mixed with paying off other people so here's my question do rules need to be changed or do we -- referrals they just need to be effectuate -- by other regulator.
That is definitely in the latter I mean there's always there's always minor details of the bankruptcy code -- this procedure that they can be tweaked and improved.
But at the core that's want not what caused this problem.
This problem was caused by a massive regular Terry regulatory failure in the first place by the CFTC but also with the complicity.
Of the SEC and now the DOJ which is dragging its feet.
You'll basically we don't need any new laws we need the laws that exist to be fully enforced.
And -- the people who are guilty of these kind of crimes to be punished with jail time.
And I think that the situation -- and you don't need a whole new layers of bureaucracy your rules that today at the hearing.
In response to a question from from senator Shelby.
It turns out that both the CFTC in the CME had people on the ground in.
The offices of MF global -- in the last days of that company and so the money effectively was stolen from right out from under their noses.
Stanley do you think you will ever stop dreaming about this -- ever stopping an obsession in your life we have to go quickly.
Well I hope it's not an obsession is actually part of Volvo of a larger battle to try to end.
The corruption and cronyism that permeates our whole financial system of political system and is really a much bigger problem than just the MF global -- battle worth fighting Stanley we appreciate you coming -- Stanley are president of -- capital management.
It perspective.
