Comment Text:
The idea of holding public meetings regarding the safeguarding of customer segregated funds is a good one. Unfortunately, it is too little and too late. Until MF Global customers are made whole (the return of 100% of funds), discussions of future protections do nothing to assure commodity customers. In addition to the return of the MF Global client funds, there are at least two other pertinent issues to be addressed:
1. Why hasn't Gary Gensler resigned? Confidant of Jon Corzine, Gensler colluded with Corzine to stop new regulations which would have prevented brokerages from loaning themselves money through repurchase agreements using client funds. These new regulations may have prevented the bankruptcy of MF Global. After the MF Global bankruptcy, Gensler recused himself from the investigation. Either Gensler resigns or Congress will do it for him.
2. Why were commodity customers sold out by letting a Chapter 11 bankruptcy with the involvement of SIPC take place – a process that favors creditors and disadvantages commodity clients? A Chapter 7 liquidation is demanded by the CFTC’s own code and would have resulted in the rapid return of all available customer assets and a prioritization over creditors. Why has no information been released regarding a closed door meeting held on October 31, 2011 between the CFTC and the SEC which determined the fate of the MF Global bankruptcy? Who from the CFTC stood by while commodity customers were sold out?
