| 00:00:35 |
Panel Change, -
STATEMENT. OF COURSE, WE WANT WHATEVER INFORMATION YOU'D LIKE TO GIVE US AND THEN WE WOULD ASK FOR FIVE MINUTES OF VERBAL TESTIMONY AND THEN WE WILL...
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| 00:01:32 |
Stabenow, Debbie - U.S. Senator, [D] Michigan
MR. DUFFY IS THE EXECUTIVE CHAIRMAN FOR THE CME GROUP BASED OUT OF CHICAGO, ILLINOIS. HE'S BEEN A MEMBER OF THE BOARD SINCE 1995. HE'S PRESIDENT OF TDA...
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| 00:03:39 |
Sommers, Jill - Commissioner
FINANCIAL DIFFICULTY. THEY MAY INITIATE A LIQUIDATION PROCEEDING TO PROTECT CUSTOMERS OF AN INVOL VENT BROKER/DEALER WHEN STATUTORY CRITERIA ARE MET....
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| 00:10:13 |
Giddens, James - Trustee
A MANNER THAT IS FAIR AND CONSISTENT WITH THE APPLICABLE PROVISIONS OF THE SECURITIES INVESTOR PROTECTION ACT, THE BANKRUPTCY CODE AND THE CFTC REGULATIONS....
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| 00:17:24 |
Duffy, Terrence A. - Executive Chair
GENERAL LEDGER AND THIRD-PARTY SOURCES AND BEGAN THE PROCESS OF TYING OUT THE NUMBERS FOR WEDNESDAY'S REPORT. THAT SUBSTANTIAL REVIEW PROCESS OF THE...
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| 00:22:43 |
Stabenow, Debbie - U.S. Senator, [D] Michigan
TO THE THURSDAY TESTIMONY. >> AND DO YOU HAVE THE NAMES OF THE SPECIFIC PEOPLE INVOLVED IN TERMS OF -- >> I WAS GIVEN -- >> YOU'RE SPEAKING OF PEOPLE...
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| 00:23:31 |
Duffy, Terrence A. - Executive Chair
ON CFTC'S EFFORT TO ACQUIRE MORE OF EXCHANGES IN CLEARINGHOUSES LIKE CME WHEN IT COMES TO COMPLIANCE AND OVERSIGHT. IN FACT, IN MARCH YOU SAID THERE'S...
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| 00:25:53 |
Roll Tape, -
YOU PLANNING ON REVIEWING YOUR OVERSIGHT SYSTEMS IN LIGHT OF THE MF GLOBAL BANKRUPTCY? >> I WOULD SAY ANY TIME SOMETHING OF THIS MAGNITUDE HAPPENS, WHICH...
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| 00:29:06 |
Sommers, Jill - Commissioner
FUNDS. >> MR. DUFFY? >> I'M NOT A TRUSTEE NOR A REGULATOR. BUT I BELIEVE THAT THERE IS SIPPIC INSURANCE ON THE BROKER/DEALER SIDE. THIS IS WHAT WE CALL...
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| 00:29:37 |
Giddens, James - Trustee
WELL, THANK YOU, MADAM CHAIRWOMAN. MR. DUFFY, WE'VE SPENT A LOT OF TIME HERE TODAY. WE PROBABLY SHOULD HAVE HAD YOU ON FIRST. YOU HAVE SORT OF TOSSED...
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| 00:30:30 |
Duffy, Terrence A. - Executive Chair
SIR, I AM REPORTING BACK TO YOU EVERYTHING THAT I KNOW THAT WAS TOLD TO ME. I WAS NOT THERE, SIR. BUT WE -- IN OUR INTERVIEWS WITH OUR EMPLOYEES, OUR...
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| 00:31:09 |
Roberts, Pat - U.S. Senator, [R] Kansas
THAT WAS MADE TO A EUROPEAN AFFILIATE OF MF GLOBAL. IF I'M UNDERSTANDING IT CORRECTLY. IF I REMEMBER CORRECTLY. >> DID THEY INDICATE WHEN THOSE ...
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| 00:31:52 |
Duffy, Terrence A. - Executive Chair
YOU WHAT I KNOW. >> I APPRECIATE THAT. COMMISSIONER SOMMERS, IT'S MY UNDERSTANDING THE CFTC CAN CREATE ADVISORY BOARDS COMPOSED OF INDUSTRY OFFICIALS....
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| 00:32:23 |
Fade to Black, -
THEIR FEEDBACK ON LESSONS LEARNED. >> HAS ANYBODY STOPPED YOU OR RECOMMENDED OTHERWISE? >> NO. WE HAVE -- I DON'T THINK WE'VE HAD DISCUSSIONS THAT...
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| 00:33:31 |
Sommers, Jill - Commissioner
LET ME GET ORGANIZED HERE, MR. DUFFY. AGAIN, BEGINNING ON MONDAY, OCTOBER 24, THE DAY OF THE MOODY'S DOWNGRADE, YOU HAVE SAID THAT CME BEGAN HEIGHTENED...
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| 00:37:54 |
Stabenow, Debbie - U.S. Senator, [D] Michigan
THAT. WE'RE IN THE PROCESS OF COLLECTING FROM COUNTERPARTIES AT MF GLOBAL INC. WHO PRINCIPALLY CLOSED DOWN ALL OPEN TRANSACTIONS AFTER THE BANKRUPTCY...
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| 00:38:31 |
Sommers, Jill - Commissioner
AS A TRUSTEE IS TO PURSUE CAUSES OF ACTION TO RECOVER ASSETS FOR CUSTOMERS. AND WE INTEND TO DO THAT. >> THANK YOU. MR. DUFFY? >> I HAVE NOTHING MORE...
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| 00:39:05 |
Giddens, James - Trustee
THE TRUSTEE TO PAY BACK. I ALSO SAID THERE'S $158 BILLION OF CUSTOMER SEGREGATED FUNDS IN THE UNITED STATES. NOBODY CAN GUARANTEE $158 BILLION. YOU KNOW,...
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| 00:40:20 |
Duffy, Terrence A. - Executive Chair
THE PREMIUMS WOULD BE SO ASTRONOMICAL IT WOULD NEVER MEET THE PAYOUT OF WHAT IT COULD BE. I DON'T KNOW IF THAT'S SOMETHING THAT WOULD BE BENEFICIAL....
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| 00:42:02 |
Stabenow, Debbie - U.S. Senator, [D] Michigan
INADEQUACY IN THE JOB THAT THE DSRO HAS DONE, WE MAKE RECOMMENDATIONS TO THEM TO IMPROVE THEIR SYSTEMS. >> AFTER THIS INVESTIGATION IS DONE, ARE YOU...
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| 00:42:39 |
Sommers, Jill - Commissioner
NOW, THAT THOSE INVESTMENTS AND THE INVESTMENTS DECREASE IN VALUE THAT THE FIRM IS RESPONSIBLE FOR THE LOSS, NOT THE CUSTOMER? >> THAT'S RIGHT. IF...
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| 00:44:52 |
Roberts, Pat - U.S. Senator, [R] Kansas
THE FALSE SEG REPORTS THAT WE RECEIVED AND NOW WERE AWARE OF. >> WHAT EXACTLY DID MF GLOBAL TELL YOU? >> I WAS NOT -- I WAS NOT THERE, SIR. OBVIOUSLY,...
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| 00:45:04 |
Duffy, Terrence A. - Executive Chair
MORNING. I FOUND OUT ABOUT IT 8:00 THE FOLLOWING MORNING. I WAS ONLY TOLD THAT THEY CAME TO US AND THE CFTC SAYING, STOP LOOKING FOR THE SO-CALLED...
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| 00:48:01 |
Giddens, James - Trustee
ANALYSIS. I THINK IT'S FAIR TO SAY IT'S MORE THAN JUST LOOKING AT TRANSACTIONS IN THE LAST FEW DAYS. I THINK IT'S LOOKING AT WHETHER IT'S RELEVANT OR...
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| 00:51:36 |
Klobuchar, Amy - U.S. Senator, [D] Minnesota
MF GLOBAL, YES. >> WHO IS THIS WOMAN? >> I DON'T HAVE HER EXACT NAME. I DON'T WANT TO -- I TOLD SENATOR ROBERTS I WILL GIVE IT TO THE COMMITTEE AFTERWARDS....
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| 00:51:58 |
Duffy, Terrence A. - Executive Chair
I HAVE NO IDEA, MA'AM. >> OKAY. THEN I KNOW THAT SENATOR ROBERTS JUST ASKED YOU ABOUT THAT, BUT IN YOUR TESTIMONY, YOU SAID THE TRANSFER OF SEGREGATED...
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| 00:55:46 |
Giddens, James - Trustee
HOW ABOUT ABOVE THAT? UNDER WHAT CIRCUMSTANCES COULD CUSTOMERS WHO HAD THEIR FUNDS IN SEGREGATED ACCOUNTS NOT BE MADE WHOLE? >> IF WE HAVE -- CONTINUE...
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| 00:59:39 |
Boozman, John - U.S. Senator, [R] Arkansas
OUTSIDE? >> THERE COULD BEMOAN IN A LOT OF OTHER ACCOUNTS OUTSIDE OF 4-D. THERE COULD BE HOUSE PROPRIETARY ACCOUNTS, BROKER DEALER ACCOUNTS, THE FOREIGN...
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| 00:59:50 |
Duffy, Terrence A. - Executive Chair
TAG AS 30.7 ACCOUNTS. >> OKAY. VERY GOOD. MR. GIDDENS, THE $550 MILLION GUARANTEE, IS IT GOING TO BE USED TO MAKE KU SKUS WHOLE IF WE CAN'T FIND THE...
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| 01:00:42 |
Sommers, Jill - Commissioner
IS CORRECT THAT CME HAS SAID TO THE TRUSTEE PAY UP THE 75 CENTS FOR EVERY DOLLAR AND YOU END UP WITH ONLY 65 CENTS, WE WILL MAKE UP TEN CENTS. SO...
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| 01:01:25 |
Giddens, James - Trustee
THANK YOU. SENATOR. >> I'D LIKE TO START WITH MR. DUFFY. WOULD YOU FEEL THAT IT'S FAIR TO SAY THAT EITHER CUSTOMER MONEY WAS MOVED FROM SEGREGATED...
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| 01:02:53 |
Hoeven, John - U.S. Senator, [R] North Dakota
TO STOP LOOKING FOR THE QUTACCOUNTING ERROR. >> UNDER WHAT AUTHORITY DID THEY HAVE TO MAKE THOSE TRANSFERS? >> I DON'T KNOW IF THEY WERE THE ONES THAT...
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| 01:03:13 |
Duffy, Terrence A. - Executive Chair
2:00 A.M. IN THE MORNING. >> SO WOULD IT BE YOUR EXPECTATION THAT THE INVESTIGATION LED BY THE DOJ IN TANDEM WITH YOUR HELP, THE CFTC, STC, TRUSTEE...
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| 01:05:48 |
Sommers, Jill - Commissioner
MONEY THAT THEY ASKED BE TRANSFERRED TO THE BROTHER DEALERDEAL BROKER DEALER THAT WOULD BE LEGITIMATE TRANSFER AND WE'D HAVE TO FOLLOW ANY SUPPORTING...
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| 01:09:44 |
Giddens, James - Trustee
POINT. >> I THINK THAT'S A GOOD PLACE TO END -- YES. >> DO I HAVEI DO HAVE A FOLLOW-UP QUESTION. >> WE NEED TO BRING THE HEARING TO A CLOSE. I WONDER...
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| 01:11:09 |
Stabenow, Debbie - U.S. Senator, [D] Michigan
DISTRIBUTION SHOULD GIVE EVERY PERSON 72% OF THEIR CLAIM. IF THEIR CLAIM WERE FOR A MILLION DOLLAR, SHE GET $720,000. THE SHORTFALL, THE $1.2 MILLION,...
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| 01:11:31 |
Hoeven, John - U.S. Senator, [R] North Dakota
SECURITIES CUSTOMERS, ONE FOR THE U.S. FOLKS WHO TRANSACTED A FOREIGN FUTURES SUCH AS ON THE LONDONS METALS EXCHANGE, AND THEN THE LARGEST POT OF THAT...
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| 01:11:54 |
Giddens, James - Trustee
WHAT WE HAVE COLLECTED IS WHAT LEADS US TO THE APPROXIMATE $1.2 BILLION. >> THANK YOU. >> THANK YOU VERY MUCH. AND WE THANK ALL OF YOU FOR COMING TODAY....
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| 01:13:18 |
Stabenow, Debbie - U.S. Senator, [D] Michigan
A
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NOTE: The transcript for this program was compiled from uncorrected Closed Captioning.