Date: 2014-06-23
Speaker: JACKSON LEE (democrat)
Chamber: H

Mr. Chair. I thank the chairman very much. I thank the chairman and the ranking member of the committee and knowing how hard they have worked. I hope that this discussion today will emphasize a commitment to transparency and a commitment to consumers and a commitment to making the legislation responsive to consumers. So I thank you for the opportunity. This legislation is to reauthorize and improve the operations of the Commodity Futures Trading Commission as well as address concerns from customers from another failure such as the MF Global and Peregrine Financial. It is a product of a multiyear process that included hearings and perspectives from market participants. end users. futures customers. and the CFTC. The Jackson Lee amendment only seeks to improve this bill. If passed. it would require a study that will provide very basic information about firms regulated by the Commodity Futures Trading Commission. The amendment simply requires the CFTC to do a report examining the number of entities regulated by them. the entitys size. practice models. and assets under management. We must be quick to acknowledge that the dramatic failures of not just MF Global but several other venerated firms. such Bear Stearns. speak loudly to requiring more information for the consumer. This amendment would also provide more insight as to how the industry works. My amendment gives 2 years for the agency to complete the first study. That is a very long time. Again. the report provides more information for the very consumers that we are trying to protect. That is more than enough time for the staff of the CFTC to comply with the amendment. In that span of 2 years. a lot of things can change. but the gist of the amendment is to provide more transparency for the investors. as many on this floor have already spoken of. It is critical that investors know what is going on. particularly small investors who are not privy to the information that many of the larger entities are made aware. My amendment. again. basic information via an agency study. much of which the Commission already has. and I am merely seeking to have it. Let me just share just one aspect of this and then conclude. More importantly. in my conclusion. many of the residents of the 18th Congressional District have invested in homes. stocks. and education. to see it all flittered away because someone on Wall StreetFrance or Houston. evenpushed the wrong button generating a contratrade when they meant to bid in the other direction. This is not what Americans want to see. This is a regulated entity. Transparency is viable. Let me show you a letter that was sent from the trustee of MF Global to some poor person who. after 5 years. got their few dollars after this major bankruptcy. Enclosed with this mailing is a check from the trustee in payment of your allowed customer claim. They got it 5 years later. With this check the full net equity value. as established in the Bankruptcy Court. of your segregated property. the amount related to your trading on domestic exchanges or "4(d) Property." will have been distributed to you. Your former account number at MF Global appears on the check. Please cash this check as soon as possible. That is another frightening thing. You better hurry up and get the $25 or $40 that came. To ensure proper and prompt processing. I will include the letter for the RECORD here.