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CFTC Commissioner Bart Chilton on the investigations into MF Global’s missing money.
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The MF global bankruptcy trustee to -- releasing a report breaking down what went wrong and who's to blame.
For the more than one and a half billion dollars in missing customer money.
The report takes aim at former CEO Jon Corzine himself for negligence at the banks that receive the funds and of course -- regulators who didn't prevent it.
Here with reaction Bart Chilton CFTC commissioner -- welcome back to the show it's always great to have you here.
We -- your 275.
Pages -- admit to -- to reading it but not being totally successful here which you make of it.
Well I think it paint -- really deeply disturbing picture of what the trustee says went on -- MF global.
Of course we have our own investigation our division of enforcement is looking at that independently and will come up with our own facts and circumstances and whether or not they violated the law.
But certainly as I say it's a deeply disturbing picture what the trustee is painted RE here's.
The trustee had to say it's not James didn't he says my investigation is concluded that management's actions along with the lack of sufficient monitoring and systems.
Resulted in customer property being used during the little liquidity crisis.
To what degree is Corzine himself gonna have to face the music here.
Well again I can't comment on -- -- you know investigation or what what may have gone wrong -- obviously something drastically wrong.
Took place bit I believe it was nefarious -- to some extent.
And the other books and records were or a -- a mass but whether or not you know actual charges are filed against individuals that remains to be seen and I I just can't pre judge our investigation.
And of course -- there is an investigation by the Securities and Exchange Commission.
And the FBI and the Department of Justice others multiple regulators and law enforcement -- is looking this thing.
Terrorists got their hand in the till they're trying to figure out what happened probably interviewing all the same witnesses.
You describe it though as nefarious.
And one of the big question sort of emerging now is it looks like some of this money is parked in London.
When we know about it.
We know that it's a big mess I mean -- futures customers that -- US citizens and wanted to trade in London.
Through MF.
Over 700 million dollars 700 million dollars was transferred to the UK.
But the UK regulators are saying that once status US customer monies.
Made the trip over the pond that somehow it lost its identity that gonna lost its identity and they're not giving it back -- and that it.
That you really unfortunate.
Now I know you have some ideas for protecting consumers people who do business with these -- the company's.
What I mean that's ridiculous that they don't even know where the money came from and -- -- you -- go back to.
What do we do to fix this old what can we -- to get these companies tend to work for us instead of themselves.
What are a couple of things one and we're already doing this Gerri we've talked about it actually couple months ago which is.
Deeper data dies which is making sure that the money is actually there the customer money is there.
100% of the time.
Not that it might have been used during the middle of the day and that gets put back in at the end of the day to make a balance sheet look okay.
We need to ensure that that money is -- 24/7 365.
Secondly we should make sure -- is executives are accountable.
That they have personal culpability when something goes wrong.
Not that it's he said she said set of circumstances.
That something we can do and what congress needs to do this is the last thing.
And it's got pushed them to do this but they haven't taken it up yet although that the trustee -- in his report today called fort.
And that is -- insurance fund we all know how that the banking industry and banking customers have the Federal Deposit Insurance Corp.
So it's an insurance fund for banking customers they have that the securities world -- but futures -- customers are treated as second class citizens so we need an insurance fund.
For futures customers as well.
Well and lots of changes you're suggesting.
Left their way to what wait and watch and see that comes to pass -- have come back part.
Thanks for your help tonight really pretty.
