mr. gensler is not here today? >> congressman, mr. gansler has recused himself from matters regarding mf global. >> it's interesting to me that mr. gensler has been willing to come in here hearing after hearing to explain the inordinate delays that cftc has had in regulations and rules on perhaps the most important to the agricultural community nationwide come most important hearing we have had in years. we are glad to have you here but i find that in light of his past past -- entirely unacceptable. when did you first determine and when did he first determined that he was going to recuse himself? >> it is a my understanding that he made that decision on november 4. >> is that because he is part of this whole same goldman sachs fraternity that includes ministers of foreign governments and in which the monies were invested? mr. corzine himself, mr. gensler himself in this whole nebulous group of individuals? is that why he has decided to recuse himself? is he part of that group or why did he do that? >> i don't know that. >> we apprecia

mr. gensler? >> no private conversations my rolex collection -- in my recollection were held between mr. gensler and myself. to the best of my recollection, and this is why need records, mr. gensler was on the general discussion with regulators on the very early hours of october 31, and if i am not mistaken, boasting that was given to regulators on saturday, which i guess would have been the 29th, when there were a series of regulators. >> at any point did mr. gensler courage a bankruptcy filing? >> in my recollection, there was no encouragement in any of those forms, and i do not recall anyone suggesting that he was encouraging bankruptcy filings. >> mr. corzine, as a registered futures merchant, mf global was subject to periodic audits. what were the result of those audits over the past year? >> mr. chairman, from my -- >> would have reviewed this, correct? >> i would have, if there were exceptions to challenges that i have included in my statement. we certainly had discussions with finra in the

mr. gensler has been trying to remake the tax system and should have been making sure that mf global wasot stealing customers' money. >> paul: give me more power because i couldn't use the power i had before. >> exactly, an outrage. >> paul: kim. >> a giant hit to the pearl harbor survivors association in this week celebrated the 70th and last day of remembrance for infamy, when the group started 28,000 members, but with so many having died or over the age of 90 now down to about 10% of their number and calling it a day. this is a moment for the younger generation to remember that we're going to have to start doing the remembering and honoring for these people. >> paul: all right. kim, thank you very much. if you have your own hit or

mr. gensler, at 2:15 you had a meeting with ms. summers on the phone and at 3:30 the third with the commissioner, mr. childers. can you describe the toib -- topics of those calls? >> to my recollection, i was on the phone with chairman gensler at 1 and commissioner chilton at the time that you brought forward. and, again, as we have suggested in both written and in my response to questions, primary subject of that conversation were repos between the broker dealer and the scm. >> three separate meetings according to cftc with three separate commissioners that you participated in. did you have any separate calls or conversations with mr. gensler when you took the job at mf global to the present time? other than what you've indicated? >> to the best of my recollection, you have my calls, my meetings. >> okay. >> outlined. >> you never once called their cell phone? >> no. >> okay. did you ever call another member of the administration during this time about any of these issues? >> i'm sorry, congressman, i couldn't hear you. >> did you

mr. gensler. >> can i respond? >> sure. briefly. >> we try to take on lot of complicated -- >> you're not taking and the sc as you said you would. you have not taken it on. you came out with a multiple choice that makes everybody happy and you did not do what you said you would do. you said you would come forward at the beginning of the year with a real proposal. the year is almost over and you have not done that. >> we have put out some serious ideas and continue to work on proposals and we will work with whoever on the hill wants to work with us. >> mr. gensler, i wasn't going to weigh in on this. i figured others would do it and i have other questions. i just wasn't going to do it. it appears to me, i don't know if you would make the same decision again but the people that care about basel -- the people that care about mf global karen of to the point that you recuse yourself. the enforcement peace will take its own course and i am sure it will be tough. but it feels to me like you panicked and it was more about a career

mr. gensler, who does a good job couldn't get their info he needed. this is not the first time at the same same problem with regard to the anti-speculation role. and i say that because this commission structure, which can lead to delay and the adoption of report rules is exactly what my republican colleagues want to draft anticonsumer bureau, hoping for similar results, much less effective action. let's go back to the whole question of regulation. members of said regulators into a a good enough job. probably because the extent to which we can expect regulators to reply volunteer help is limited. the regulators are not the salvation army. what we have are my republican colleagues consistently resisting the funding that the commodity futures trading and primary regulator, there is clearly a primary sponsor of the cftc. i don't think regulatory diversity was a problem. but we have is a significant lack of funding for the cftc. it's a complicated matters that require intelligent people to do this. the president asked for $308 million. 117 million to be fu

mr. gary gensler the time? >> with regard to the activities in the last 10 days i have written in my written statement everything that i can recollect about specific interactions. the july teleconference call, courtesy calls when i first took over at mf global. >> but not during this time of the last few days before bankruptcy the you have any one- on-one conversations with gary to answer? >> correct. ok. last question for you, then a question for mr. steenkamp. if none of you know what happened with the customers' money, could each of you give me or the committee the name of some mf global employee that can tell this committee what happened to the segregated customer accounts next there has to be someone there that can give us the story. give us a name. joe blow, mary smith? >> senator, i would go to our treasury department, and the people who headed that are probably closest to the scene of the action. >> but that does not give us one name for sure that could answer the question. you are saying someone in tha

mr. chairman. chairman gensler, according to the mf global bankruptcy trustee, as much as $1.2 billion is, or more of customer funds are missing from the cftc, are missing there. where's the cftc as a regulator, where have you been there? and secondly, do you know where the must money is? >> senator, as not participating in the matters, it may be appropriate -- >> why are you not participating? >> um -- >> for the record. >> absolutely, sir. i think it's a good question. though the attorneys at the cftc, the chief ethics officer and the general counsel had indicated to me that they didn't see a reason, legal or ethical reasons for me not to participate, i reached out to them that week as it turned to an enforcement matter and before we had our first closed-door surveillance meetings. we have closed-door surveillance meetings every friday and have or for 30-plus years and said i didn't want my participation to be a distraction, there had already been some questions, from this important matter. >> are you not participating because of a prior relationship with the chairman of mf global, jon corzine?

i've also asked him to determine whether chairman gensler's recusal was appropriate and whether mr.kinsler should have recused himself much earlier in the process. in the absence of a committee investigation, the i.t.'s examination will help to determine whether mf global receive special consideration by the cftc. although the see ftc's failures have received the most attention, our other financial regulators have had their own difficulties. over the last year it appears that the securities and exchange commission has been operating as a no-doc regular in its rule makings and enforcement action. first the sec's roxie access rule was struck down as arbitrary and capricious by the d.c. circuit because the sec failed to properly conduct economic analysis before issuing the rule. just last week a federal court refused to endorse a major sec settlement because the sec failed to provide sufficient evidence that the settlement was in the public interest. meanwhile, banking regulators have struggled to effectively implement several key roles. most importantly the proposal to implement the p