You're watching...
Sen. Richard Shelby, (R-Ala.), weighs in on regulators’ involvement with the PFGBest failure and Barclays’ Libor scandal.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
So another -- futures firm blow up.
After an estimated 200 million dollars in customer bonds have gone missing.
Could regulators have done more here's what CFTC chairman Bart Chilton had to say last night on money.
What were alleging here is that there is intentional fraud intentional fraud IE somebody lied.
So when you do spot checks I mean year of -- if somebody is gonna lie if somebody's gonna try to break the law.
That's -- pretty tough thing to find.
-- joining us now for first on Fox Business interview senator Richard Shelby Republican from Alabama.
So let me ask you to react -- that sound -- that you just heard I mean that was the CFTC commissioner basically saying.
If people are gonna -- -- -- there's no way pressed to catch them.
Well you can catch them but you should see -- -- there.
I believe the regulators are gonna have to be more involved everywhere.
The CFTC has had a number of failures as regulators they realize this -- another wouldn't.
They've got to get involved they've got to get beat and they've got -- Be suspicious of things at times perhaps they've been too lax with certain groups and may -- too close.
To certain people.
Let's see their defense I -- we went through the records and there is a laundry list of complaints fines and investigations.
Into this firm over time.
They were in there they still -- stated.
You -- on the heels of MF global just nine months prior -- a business model is broken it.
If there -- if there were a series of -- -- Possible sprawl and all these things going on somebody should put these people out of business you know -- -- do you continue to.
Let people do business that our problem.
From the beginning problems in the future that you're suspicious sobbing at the end of the day they come up with something big and you say well gosh what half.
When you have -- -- so what's gonna happen but what people are doing day to day.
So maybe that's a long line that it you know -- a list of mounting failures from the regulators.
What would you like to see them do I mean do we need to see someone other than Bart Chilton running the CFTC.
Do we need to -- Go ahead.
Out didn't think he was chairman he's -- commissioner.
The chairman is Gensler and he's had his problems with you -- have globally as you well know -- -- -- himself from that that's been a big failure is not been resolved yet.
I mentioned that he was close to Jon Corzine.
Sometimes the regulators are too close to people that they're regulating they've got to be more diligent they got to do a better job.
I think they can do better they better do better do you think either or both of those gentlemen need to get out.
Well I.
I think dancers it chairman and he's had problems before.
That's where I would focus in on the chairman.
Okay.
Let's turn to the Libor scandal not yet so much on your plate right now.
-- I know you're gonna see it Timothy Geithner is going to come and testify before the committee what are the questions what would you like to hear from him about this particular scandal and you think that the New York bad.
You know was was asleep -- the -- Well we don't know yet what who did what but that's what we need to do we need to do it sequentially.
We need to know what the role the Fed played in this.
If if there was a conspiracy of house some kind.
To -- lower the Libor rates to -- -- -- certain banks at that time.
Did their regulator like the Federal Reserve solitaire president of -- of bank in New York was Geithner that time.
Did he know this what did -- know I hope -- will come prepared to answer a lot of questions becomes the manipulation of Libor affects.
Thanks just about everybody in the world include most consumers in the United States.
Senator -- -- here we've been covering so many congressional hearings on scandals on gigantic losses JPMorgan.
So many hearings back and forth on Dodd-Frank as well yet these issues keep coming up.
What is it gonna take to make a meaningful difference so that consumers.
From Wall Street to main street just have confidence in our financial system.
-- that's an excellent question -- and the timing couldn't be better.
But a lot of banks banking historical he's been built on trust integrity.
And a lot that is missing today -- overlap -- scandal the CFTC problems with -- That it's just become -- let the other banks things we've got to get back to having.
Management.
With the integrity and not scandals day after day written that we also that have regulators that her -- top of things not coming unity.
-- week we should have done this so we should've done this they've got to be proactive.
But -- there's no sense TT integrity.
Is it more difficult.
To.
To find its integrity -- I'm going with that's my line of thinking is gosh we're in a fiscal crisis.
From the federal government and state governments municipalities so is it tougher now.
To accept these beings or to look -- to -- in being optimistic that these improvements will happen in our confidence will return.
Then it would have been I don't know even as recently as a year or two ago.
Well -- average a person in the American perhaps in the world they -- all these scandals they see all these.
May the deal comedian and -- and conflicts of interest and they wonder what's really happened in the banking system all over the world.
I think we've got to go with integrity -- -- building it's hard to to build it is easy to lose that's part of the problem.
Facing the whole banking system today.
-- senator Richard Shelby thanks for coming on today we.
