Print

Outgoing CFTC Commissioner Bart Chilton Makes Strong Statements Regardings

The Commodity Futures Trading Commission has been at the center of a fight to regulate the derivatives that were at the center of the 2008 crash.  This fight took center stage when CFTC Commissioner Bart Chilton recently gave what is arguably the most aggressive interview ever by a regulator.  Not since former CFTC Chairperson Brooksley Born confronted big bank forces in 1998 regarding unregulated derivatives and was essentially ousted from office by these same big bank forces has a CFTC commissioner been so outspoken regarding the stealth control of the largest banks.

Seldom do regulators confront other regulators in public for protecting the banks.  In this interview, Chilton discloses how the US Federal Reserve has refused to provide big bank position limits to the CFTC, which is charged with monitoring such activity.  “I’m a CFTC Commissioner and I’ve been trying to find out what the banks own in the way of commodities and I can’t tell you what their positions are,” Chilton said in the interview. “I’ve been trying to find out from the Federal Reserve, which has this information, since the end of July 2013.  I’ve asked the Federal Reserve to send me a list, give me a link to the information they have. I receive links but they go to nowhere where I can see the information.”

Chilton then took aim at a more troubling issue: the overwhelming influence large banks have in controlling a democratic society.  “We have these large banks owning all sorts of things that we are not unaware of. There is a theoretical conflict of interest and some problems with the law,” Chilton noted.  “Do we really want banks influencing our media? Owning our cable companies, phone companies, our grocery stores and movie studios?”

Other issues addressed in the interview included a discussion of “malfeasance” in the MF Global case, the fact that had the Obama administration come to Chilton earlier in 2013 he would have stayed to finish rule writing on Dodd Frank, and Chilton clearly points the finger at unregulated derivatives for the 2008 market crash.

Video Link:

https://www.youtube.com/watch?v=7xcgsKaAXO4#t=177

To read the full interview, click on this link:

http://www.uncorrelatedinvestments.com/blog/wp-content/uploads/2013/11/NovOFIFinal.pdf

 

DISCLOSURE: These are the opinions of the author and may not have considered all risk factors. Nothing on this web site should be construed as an individual recommendation, talk to your independent advisor. The author and Opalesque may have relationships with those people they cover in the publication. Mr. Melin provides a full disclosure of his business relationships to regulators and certain eligible participants who engage him in consulting projects. Managed futures investing involves risk and there are no guarantees of safety or future performance being implied. Managed futures can be a risky investment. This web site and its content is subject to the terms of the web site. Risk Disclosure and terms of web site are available here: http://www.uncorrelatedinvestments.com/templates/Disclaimer.html Performance information received on this site is provided by third parties and deemed reliable but there is no guarantee relative to same. Performance reporting sources and quality assurance techniques may include, but are not limited to: disclosure document, CTA self reporting, brokerage firm reporting, consultant reporting, spot checking other reporting databases; nonetheless no guarantee of accuracy or implication performance verification or auditing is being made by the publishers. The CTA Database is a project separately managed from www.uncorrelatedinvestments.com.

Leave a Reply


*