mr. baxter, to know if the fed has been looking at any entities on the other side of these agreements? >> you know, ranking member, that i can't talk about specific regulated institutions. but the answer to your question generically as we were looking at certain institutions, banking institutions before the before e bankruptcy and will continue to look at them after the bankruptcy. >> i will take eventually i myself will want to go to to ask question. i'm not expecting millions today. to make this mess there had to be two parties. one party might have been mf global, maybe or maybe not doing something well but had to be another party. if there's another regulated entity after getting loans, getting risky situations, this unfortunately sounds all too familiar. which i know it's too early yet but i just want to make sure that the fed is aware that i for one want to go down that road when the time is appropriate. mr. berkovitz, for the ctc, you just last week, i think it was, change regulation 125. but that change has been pending since may 2009. that's two years, officially put out their

mr. baxter? >> again, there are protections in law for transferees who are bona fide purchasers, and have no knowledge that the property they are acquiring has in any way tainted in title or otherwise. and i don't know the facts, congressman, as to what -- >> the purchase had been made after everyone was aware, you got $1.2 billion missing. i mean, i think even the most extraordinarily naÏve person would say there's $1.2 billion missing here somewhere, i wonder why i'm getting such a bargain on this. >> and perhaps mr. kobak is more -- >> all right. >> we have worked in a couple bankruptcy together. oftentimes it's important to liquefy some assets, particularly if the market is declining and those assets are losing value. so you shouldn't jump to the conclusion, congressman, that a sale is necessarily bad for the bankruptcy estate. it wasn't for some of the estates that i acted as liquidator for, and i suspect that jim would agree with me. >> and again, i'm trying to think of customers first, jus

mr. thomas baxter general counsel of the federal reserve bank of new york. mr. her members of the subcommittee. thank you for inviting me to appear here today. i am tom i am tom baxter, general counsel of the federal reserve ancop new york. i will speak about the new york fed's relationship with its primary dealers and more specifically, how a relationship with the former primary dealer mf global inc.. let me start with a short summary of the new york fed's relationship with the regulated institutions that we designated as primary dealers. our relationship with this group of 21 firms is a counterparty relationship, not a supervisory relationship. we are not a supervisor. primary dealers serve as trading counterparties in the transactions that the new york fed undertakes to implement monetary policy. as such, primary dealers are required to participate in consistently as counterparties to the new york fed and purchases and sales of treasury and agency security. primary dealers are also expected to provide the new york fed's trading desk with market information and

mr. chairman quite >> yes. >> chairman baxter admitted on september 16 and i also posit they should be a high-priority decision-making and 24 to 30 months the majority of the commission has concurred and additional amplification is a high priority rulemaking. >> thank you very much. mr. chairman, would you respond to questions. two other recommendations. one is recommendation reactors the present to hydrogen explosion we in japan or the other has to do with my state. they recommended every 10 years nuclear reactor safety standard on the strength of earthquakes and tsunamis, hurricanes or other natural disaster. if you could let me know and confirm that the others to make sure you adequately answer doors. the nonprofit organization for public surface conducts an annual survey of more than 250,000 employees to bring the best places to work in the federal government. in the last two years they've ranked the commission is number one or number two. he must be very pleased. it doesn't seem to indicate you're the kind of person that runs around terrorizing people. could you respond how you read