He compared this to his work as a Congressman and stepping back from advocating on behalf of a constituent when an issue has become part of a judicial process. But part of MFA’s mission is education. Perhaps their lawyers should have asked for a seat at the table when a judge allowed MF Global to file Chapter 11. The Commodity Futures Trading Commission (CFTC) was there but remained silent when an attorney for MF Global stated that he didn’t believe there was any shortfall in customer funds despite a statement by the firm's general counsel to the contrary the day before.
Regarding whether the CFTC erred in allowing this to go to SIPC and its general handling of the situation, Baker said, “An outside trade association informing a regulator of their duties is not well advised from the long haul.”
I have a feeling that Koutoulas would not agree, especially as in this case, if the trade association represents people who would be harmed if the regulator does not perform its duties.
Baker concluded, “The focus should be for us to understand the factual matters as best they are determined and then going forward [with] how to keep this kind of train wreck from happening again.”
Koutoulas also explained CCC’s recent proposal to the Senate for an interim liquidity facility.
He concluded by highlighting crimes he believes were clearly committed by MF Global. Things we know happened that do not need to wait on an official investigation.
“Crimes were committed and people need to go to jail to deter future criminals from looting customer accounts,” Koutoulas told the audience.