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Peter -- thanks so much.
So -- CFTC panel is holding an emergency meeting today they're considering possible overhauls to try and prevent other firms from collapsing like.
But will more regulation help the futures industry recovered turning me now is Michael -- Former CFTC commissioner and senior policy advisor at Patton Boggs.
Thank you so much for joining us Michael we appreciate it.
Thank you happening.
Listen you know I would be remiss in moving on this topic without asking you to react to the story that just came before you were Timothy Geithner sort of lead right -- the -- of the CFTC.
This whole question about knowing who was manipulating like awakened about several conversation.
Almost so we started investigating that 2008 we got it kept it actually it was something within the newspapers.
We put our investigators on it -- -- and was the chairman of the time.
When Walt moved on I was acting chairman I increased the group then -- cent followed as far as Buchanan if you need -- get department of justice and all.
Which they -- yet and it did take.
All that time to come to fruition with this first case so I can understand where the secretary is coming from Mori says.
We don't know everything we need to know yet.
Really see you're seeing that justice -- and I got on the case and women -- investigated.
Well that that would they actually we.
We've got started and then we asked justice to command and give us an assistant Kenji newer one -- After that I was no longer the -- If you're saying OK well -- because these are the questions every one of the big questions yesterday was did anybody you know for the bank -- that from the Federal Reserve of New York.
Asked to get justice involved this was something that no it was able to answer -- revealing now that you're saying that justice did get involved at some point.
I have a a rule for all our enforcement folks when they got to something that they thought there may be a possibility of criminal action.
That I wanted him to.
Let justice you know a lot of -- -- -- So it sounds like as larger -- maybe something criminal did happen.
That's for the investigations of fun and interesting all right well let me turn you now to you know the other matter at hand which is of course that PFG bass.
Scandal and you not.
One of the things that's been raised as a possible solution to the different problems that we've seen with this implosion also MF global.
-- the idea that CFTC should have the ability to look inside the bank accounts electronically.
-- daily to see that.
The client funds are being kept separate the way they're supposed to be what do you think about that is -- a good solution and how hard is it to do.
I think it's a great solution if they can find the technology to be able to do it this morning the head of the division that has the oversight of this.
When asked was how many accounts what we have to look and -- he says it's a large number it's a big numbers so they really don't have their -- all the way around.
-- all they would be looking at.
But I'm I'm really struck by today's hearing vs yesterday's hearing on the hill yesterday there were looking to assess blame.
Today is CFTC.
The MFA in the industry are looking for solutions and I think that's where we ought to be.
Yet -- -- we definitely need to find solutions because.
-- the regulator has been blamed a lot in this situation and we either need to change regulation are we need to change the business model for these brokers but.
We're seeing -- occurrence of similar problems where.
You just don't know what's going in on inside these brokerages this -- they have been looking into trying to get the technology.
To your knowledge and that they were close to doing it is the industry receptive to this to your knowledge and it sounds like you think it's pretty hard to -- While the industry has -- receptive that if that's Howell sophisticated.
As the technology that they're going to be looking.
And it -- -- in fact you know first you had the MF global how was the first -- of segregated funds.
That we have -- and parent -- actually was uncovered.
As a result of the end of the day beginning to.
Introduced technology saying we have to have an.
And in this case this CEO knew there was nothing there.
And that he was caught finally.
So if it was the beginning.
-- using technology.
-- industry moving to find solutions that actually caught the second.
Interesting do you think this is the best way to go that this would be the best solution no matter how difficult it is or or is there something else out there that would work better.
What will certainly add to that absolute number of accounts they're having individuals go through and auditors go out.
But files and do all that its cost prohibitive again.
We know that none of the regulators are getting the resources that they said they need so they go to.
Soft regular -- regulating.
And so the -- sorrows are saying all right we've got to step up the plate this has -- a black eye for this industry and everybody involved whether that.
Is trying to get it fixed.
They don't like spending 6070%.
Of their time holding hands of their clients trying to say yes what was your funds are safe.
Yeah out Michael done a lot of great information thanks for coming on to -- have you come back my play.