Dec 6 - Jeffrey Goldfarb talks to Dan Indiviglio about Wall Street's beef with the CFTC for bypassing the usual rule-making process on cross-border derivatives.
Could have what might be the ultimate in rogue trading the regulator oversees derivatives and other trading operations. Decided to put forward our rule of sorts without following proper procedure we're joined today by the -- and -- -- our Washington correspondent and his -- And you looked and -- was just very well so there's there's a lawsuit and what exactly happened yes so a couple of trade groups that you -- lobbyists in Washington are suing the CFTC. Up these banks are members. Of these guys so it's Walsh's -- -- ultimately. But Odyssey of DC's that the and they accuse -- of doing is not follow procedures which is ironically what -- -- rule making process in Washington is like just a horrible sausage. Kind of thing -- it's just painstakingly takes a long time to process sixty years of applicable corporate samples of the perfect you know who exactly it's forty years later -- -- obstacles to put out an idea letter and comment consults -- some analysis CCC in this case into any. Well yeah I mean what's -- -- usually do right -- -- in July is when they started doing this rule which governs cross border evidence that sort of thing and that was like kind of the big formal rule and this is kind of -- -- added that have been away too -- the Kennedy issued his guidance and -- -- a letter saying here's how kind of how we think about these things yet which -- -- really treats it as a rule as gospel well in this case yeah a lot of time indicted is just that -- I mean in this case though it is a very much a new kind of -- the people happen quite. And it didn't follow what are they worried about with the withdrawal. Yet with this one it would it's gonna do is. If you have to not US -- kind of parties on each side of swap for example. And they have some the use of US facilities in some way then it's automatically going to be under this yet to teachers stage a lot of double reporting double clearing -- -- that -- the -- -- yes so do what what they would industry worries about as you can happen. Technically clear -- tree in May be US and Europe which is an except -- leadership wants. Like that's sort of problem righteousness so Wall Street can stand up and say all these things in their lawsuit happened -- accusations. Let's get to see it really is not a lot to stay -- because they did not go through this procedure rather it was that case would look a lot stronger they actually got comments for Gordon you know did it cost benefit analysis said look guys usually found we're doing this rule but they -- so -- -- Out for criticism that's not -- -- -- what they did might have been legal but I mean I guess the other wrinkle in this is the head of the CFTC Gary Gensler is leaving and there's some thought that at least from an appearance and optics. Perspective that -- It could I mean definitely don't want to legacy to be solidified their -- to get as much as he cannot actions the committee is that maybe she's cramming listen. Awkwardly after it had been. -- we'll keep an eye on that case thanks for joining us and we'll be back with more breaking news next week.