bob inglis good to see you again thanks for joining me so evidently quotable bart chilton of the c f.t.c. he added again he's the commissioner of the futures industry regulator he says if anyone is going to regulate big coins it would probably be the c f.t.c. because it might be a commodity that can be used and driven if and traded on computers so what do you think this is the. well first you've got to love bird chilton because as you said eminently quotable we gave a quote the other day that he wanted to put a good housekeeping stamp of approval on all of them so he has great ambitions for regulating just about everything you know he wants to get his hands on but coins and he cited the fact that they're traded on computers that might be derivatives he should be reading the see if he's. the about page because the city of d.c. already regulates money and i just wanted to see a few things jobs to save consumers from they had wrong doing and it's possible that bitcoins could be involved tile or they are dangerous to consumer maybe we could put a warning on the package but there is no packag

c. f.t.c. had gary gensler recused himself and the early days following the bankruptcy now here is what we gathered from the c f d c's office of inspector general they said that the general counsel and designated agency ethics officer instructed that there was no need to recuse given the fact that there was neither a financial conflict nor an appearance problem yes and the important point to stress here why. gary gensler be ques themselves well he used to work at goldman sachs along with john corazon john corazon was his boss when he was c.e.o. of the firm in the late ninety's and poor gary gensler he just didn't want to do the job apparently to protect the futures industry's customers so according to this report he didn't actually have to recuse himself but there is another line here that we have talked about the revolving door. so he way the chairman's decision to issue a nonparticipation statement ran counter to specific advice on the matter and this regards the same thing that we're talking

c. f.t.c. he conveniently recused himself from the entire matter after bankruptcy filing now he did work for goldman sachs and john corazon headed the firm in the late ninety's but according to the c.f. do you see as obvious of inspector general he was advised that he didn't have to recuse himself and that's global's customers were left in the dark and looks like he was basically an absentee landlord as m.f. global just sunk so what's the significance of this report and can we expect any real changes as a result john. here. there are obviously we want to hear your. words we don't. want to be. divisive. there's. really. no. more. well maybe not so much. i don't i'm not sure because we won't know the full details of exactly what happens in that period there until after one of our justice is to move ahead with the federal prosecution. and a lot of the stuff comes out but at the end of a what it means is the city of regulator froze when they shouldn't be allowed their violent and only companies to

c. f.t.c. i was just discussing outlining the travel that same problem has been outlined to the chicago said and the fed doesn't really have a very good track record when given warnings they were given no warning in two thousand and seven as to as to what underlies the problems and essentially what happened is two thousand and eight was a derivative some closure let's just put it bluntly that was all about to reduce. well you talk with heads by managers and commodity poor operator is quite a bed and what are they doing in response to what the fed has been saying and doing three. well. i work in an industry of risk management ok so we don't know what the future is no one to us but a portion of a portfolio should be dedicated towards assets that are not dependent on the performance driver of economics supply and demand so a lot of people just look at probabilities in this industry and there are different types of crash scenarios that play out the worst type of crash scenario is the sudden flash c

corazon did but it was about one hundred forty million dollar trade in the wheat market i think and the c f.t.c. was scrutinizing m.f. global and as part of the deal the federal reserve bank of new york is the one who has to approve all primary dealer applications they said you need to clean up your act for a year and we'll see what happens and maybe you can become the primary dealers and guess who m.f. global hired to help them over that year long period. probably very yes predatory financial group headed by gene ludwig you know the former the former officer of the contra was a common currency and he's a guy that's hired dozens and dozens of former high level regulators at his firm prominent tory and it's called the biggest shadow bank the biggest shadow regulatory firm in existence so back to the back to the m.f. global story i'm going to close this tight little bow here after promissory came in the day reviewed m.f. global's risk controls and what happened after a year everything looked good march two thousand and ten they signed off john corazon enters a firm and he starts putting on these

c. f.t.c. has said he wants to put a good housekeeping fan of approval on every hour about and this thing that is maybe a little i think of all. what are your thoughts on how to rain and some of the damage that you think posing. far less than. i don't understand why it's taken you this long to find these things is there so obvious to us we've been interested for a long time and there are other tributes of who who work in city market area there's no excuse for this isn't just blatant it's getting even more blatant the elation going up. all the walk away and. color jealous of puts out a paper that shows at the top a chip tees tain't likely to be fifty nine percent of the time and then if they're successful you see exploratory training which is and we need to be a loser strategy when that paper comes out of the c o t c s academic program using c a p c data and your response it's to curtail or severely incur academics access to this data you have food in the money. there was a favor of a founder of

work for goldman sachs and john corazon headed the firm in the late ninety's but according to the c f.t.c. is obvious have inspector general he was advised that he didn't have to recuse himself and that's global's customers were left in the dark and looks like he was basically an absentee landlord as m.f. global just sunk so what's the significance of this are poor and can we. back to any real changes as a result. well i hope that we'll see some changes if it ever gets. plaiting so clearly articulated rules for what happened in recent years this arise but i obviously don't for we why have regulators despairing when the marketplace we'd all just walk through all of the capitol building or really little of what we do want people to use that device for the work that investment banks for. so little need this. was the very first arise in the future that will mean where we are they going to run but when you do shoot where should recuse yourself now with the best i've had was i was against refutal does more harm than good enough people that with. the inspector general's office well maybe not so

kind of ability to prosecute because the c f.t.c. does not the assy seat is not the justice of tarp but under eric holder does not it's just regulatory agency for real or just another joke. so sincerely i think it's another joke but they do have in did you know in the ability of for a person you know if they want so you. want. the surprise point is don't forget one thing life must of would be able to. let's it to sell the credit default swap to to the whole world if the federal government. didn't give agreements so we can also say that the current default swap has been have been made by the government of united states this is you know it's off the road but at the state level don't don't never forget that yes but. pierre isn't this just another example all of a shakedown and i'm thinking about barr chelton over at the c.f. to say he he said he was going to investigate manipulation in the silver market he said he was going to get involved in box office futures contracts but it turns out the c f t c was just shaking down these these ban

coincidentally or not coincidentally enough actually yesterday gary gensler who's the head of the c f.t.c. was pushing for a resolution or something if you have to see that would monitor those and try to rein them in and this is after last week's and he will get a stamp on each one that's all this is chilton and he said this a couple of years ago he said he wants to put a good housekeeping stamp of approval on every i'll go i just literally impossible leave it up to him to figure out no so we have the capacity to do. certainly doesn't at least goes crying to the senate budget committee again for funding this year well i think you know what's really important to understand is that these companies who are engaging in this are trading and milliseconds and macro seconds so we're talking about thousands of a second millions of a second and ever firm is in this in this market space and they have the ability to take advantage of the lane and see issue at the c.m.e. all they have to do with their servers to be a part of it it's an arms race and you have to figure that the people who are making th

john corazon head of the firm in the late ninety's but according to the c f.t.c. is obvious have inspector general he was advised that he didn't have to recuse himself and that's global's customers were left in the dark and looks like he was basically an absentee landlord as m.f. global just sunk so what's the significance of this are poor and can we expect any . well changes as a result. well i hope that we'll see some changes a figure. placing so clearly articulated rules for what happened in britain that has now arrived but i obviously don't for we why have regulators you have experience in the marketplace be dull just walk through all of the capital bill or really little of what we do want people to use that device for work and investment banks for fresh. with a little need this this was a venture exteriorize in the future it will need to have clearly articulated moment but when you shoot it where should reveal yourself now with the message i was like mr gensler refutal there's more aren't good enough people that we get. the inspector general's office well may

customers not futures customers well there's also another name here gary gensler he's the chairman of the c f.t.c. he conveniently recused himself from the entire matter after bankruptcy filing now he did work for goldman sachs and john corazon headed the firm in the late ninety's but according to the c.s.a. you see as obvious have inspector general he was advised that he didn't have to recuse himself and that's global's customers were left in the dark and looks like c.f. d.c. was basically an absentee landlord as m.f. global just sunk so what's the significance of this report and can we expect any real changes as a result john. where . there are obviously you know we want to hear your views in the market but if we don't. we're one. device for you. there's. really. no. more good. well maybe. i don't. know exactly where i am. until after. justice is move ahead with the criminal prosecution. and a lot of the stuff comes out but at the end of day what it means is the regulator froze when they shouldn't be allowed as vice pointed out all the companies to go ahead and go into chapter eleven for better

c. f.t.c. about page because it's already regulates money and i just wanted to see if these jobs to save consumers from they had wrongdoing and it's possible that bitcoins you could be involved tile or you can see where maybe we could put a warning on the package there is no package but what i'm saying is yes there are there is a lot of volatility in bitcoins but that doesn't mean that the c.r.t.c. should unilaterally usurp youth already authority to regulate something that people have created on a voluntary basis that's well known the the algorithm for creating these things is open source and people should be able to trade them freely even knowing that there is volatility all you have to do is open up a chart to figure that out if the creator when he said there is going to be twenty one billion back or twenty one million that's what he wants he's a twenty one million right what if they just make more and now you know your clients aren't worth what you thought they were to begin with and you've

contradiction in the japanese position finally does i want to ask you something late breaking story or the c f.t.c. or investigating the rigging of interest rates swap markets tell us about a particular market this particular market the significance of fixing prices and allowing for front running so this is on top of the library scandal what some thought was the biggest market manipulation history now we have something even bigger tell tell us about it. this is a very famous thing the what used to be the tele rate ninety nine to one screen where all the dealers put in their prices it will have a name it was used to set up rates the settlement etc and basically it's exactly the same problem as libel you got a bunch of people putting in quotes with huge incentive structures to manipulate that number for profit and so hardly surprisingly what happened in libel happened here and i think this is quite an interesting story in many ways it's a biggest story then probably the libel scandal is because this is a much smaller group of people and it was never really police to the same way theoretically that l

coincidentally or not coincidentally enough actually yesterday gary gensler who's the head of the c f.t.c. was pushing for a resolution or something you have to see that would monitor those and try to rein them in and this is after last week's and you will get a stamp on each one that's well this is this and he said this a couple years ago he said he wants to put a good housekeeping stamp of approval on every although i just literally impossible leave it up to him to figure out why no there we have the capacity to do. certainly doesn't at least goes crying to the senate budget committee again for funding this year well i think you know what's really important to understand is that these companies who are engaging in this are trading and milliseconds and macro seconds so we're talking about thousands of a second millions of a second and ever firm is in this in this market space and they have the ability to take advantage of the lane see issue at the c.m.e. all they have to do with their servers to be a part of it it's an arms race and you have to figure that the. who are making the most mo

c. f.t.c. had gary gensler recused himself and the early days following the bankruptcy now here is what we gathered from the c. f.t.c. the office of inspector general they said that the general counsel and designated agency ethics officer instructed that there was no need to recuse given the fact that there was neither a financial conflict nor an appearance problem yes and the important point to stress here why would gary. gensler be ques themselves well he used to work at goldman sachs along with john corazon john corazon was his boss when he was c.e.o. of the firm in the late ninety's and poor gary gensler he just didn't want to do the job apparently to protect the futures industry's customers so according to this report he didn't actually have to recuse himself but there's another line here that we have talked about the revolving door. so he way the chairman's decision to issue a nonparticipation statement ran counter to specific advice on the matter and this regards the same thing that we'r

f.t.c. he added again he's the commissioner of the futures industry regulator he says if anyone is going to regulate big clients and should probably be the c f t c because it might be a commodity that can be used and it's riveted and traded on computer so what do you think at this. point well first you got to love bird chilton because as he said eminently quotable we have a quote the other day that he wanted to put a good to housekeeping stamp of approval on all of them so he has a great ambitions for regulating just about everything you know he wants to get his hands on bitcoins and he cited the fact that there traded on computers that might be derivatives he should be reading the c.f.d. see about page because the d.c. already regulates money and i just wanted to see if these jobs to save consumers. they had wrong doing and it's possible that bitcoins you could be involved tile or you can see where maybe we could put a warning on the package there is no package but what i'm saying is yes there are there is a lot of volatility in bitcoins but that doesn't mean that the c.r.t.c. should unilaterally usurp authority authority to regulate some