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CFTC Commissioner Bart Chilton on the investigation into the rate manipulation scandal.
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-- right with more in the next step in the interest rate rigging scandal Bart Chilton commissioner of Commodity Futures Trading Commission -- welcome back to the -- always great to have you here.
Of course isn't typical kind of meeting that we were just discussing with rich -- and close door meeting.
Nobody gets to find out what happened -- -- likely questions that regulators were hearing today and what kind of information could these people expect.
Hi Gerri well used when I used to work on Capitol Hill and I did it for twenty some years usually the questions balance all over the board to -- it's not.
Well -- like a prosecutor that would go through.
A regimented.
Methodical list of questions because you've got like we're staffers -- represented forty different members of congress and so.
They really range from the you -- something that's very small to larger picture issues but I wasn't in the briefing can't tell you there were five different regulators represented there and as rich pointed out your report lasted about an hour.
All right well Commodity Futures Trading Commission was just one -- there is also the SEC others as well.
But it -- -- the question.
To what degree were regulators behind the eight ball on as for example Tim -- Geithner was head of the New York fed at this time.
He says he became aware of the problems back in 2008.
And yet.
Barclays apparently told the Fed analysts about it in 2007.
Is this going to be a critical part of anybody's investigation what did Geithner know and when did -- know it.
Yeah are you know I really don't think looking back at the Bush Administration what was going on in 2007.
As we -- should be going here Jerry.
We got we started finding this stuff because of media reports in 2008.
The CFTC did.
And they went after them and we caught the bad guys and -- I'm really pleased that we got that -- our largest settlement we've ever had in history.
It's unfortunate but you know you regulators can't.
Catch crying instantaneously.
It's unfortunately part of the system.
Ever happens fast enough in what is you haven't investigation ongoing what's the status -- it.
Well really can't get into the details unfortunately but you -- -- we've talked about it before Jerry certainly these questions about where other banks trying to rig the Libor rate are the questions we Baskin.
If there's any violations or even potential violations of the commodity exchange act were gonna be looking Adam.
And we are looking at those sorts of things but he can't give you much more.
You've told trade publications that this is quote a -- that matter.
That it's critical that it matters very much and of course we had people on our air saying hey this isn't a big deal and what's more these interest rates if they -- change they were changed to benefit consumers what do you say that that.
Well they go back and forth -- sometimes they wanted him.
Try to manipulate the rates higher sometimes lower.
And just because somebody might have got away with speeding at some point doesn't -- it's good for the other -- on the roads these interest rates could have a devastating impact.
On consumers whether or not their higher -- you want them to be fair -- what you really want.
And this impacts mortgage rates student loans car loans.
About everything people buy with a credit -- so it's a huge deal that part of these folks tried to manipulate the market that they didn't succeed.
But as we say there are others that we look at to ensure that that's not going on continuing or not the future.
You -- of the new authority in the wake of Dodd-Frank in these kinds of cases.
Absolutely but we want to make sure that it cases that we bring Jerry with the new authority -- good that they don't get mired down in -- -- football you know lawyers that are out there so we -- -- have good cases but the bottom line is manipulation used to require that we.
-- intense in addition to the market power to make a move and that you actually moved.
A market -- it was very difficult it's a little bit easier now we are gonna -- cases we're very serious about this manipulation these markets will not be allowed.
Wal-Mart we're happy having on any time anyone had come on and tell us hit new year after thanks her for coming on the show and I -- Explaining some of those to us we appreciate it.
