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According to the Collins English Dictionary 10th Edition fraud can be defined as: "deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage".[1] In the broadest sense, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation. Defrauding people or entities of money or valuables is a common purpose of fraud, but there have also been fraudulent "discoveries", e.g. in science, to gain prestige rather than immediate monetary gain
*As defined in Wikipedia

Wednesday, October 3, 2012

Another Look at Former Goldman Sachs guy Gary Gensler

When did saving a bank become more important than saving a country?---John Ralston Saul

Occasionally we have taken a look at how the new rules governing banking (based on the Dodd-Frank bill) are being created.  There has been an enormous amount of lobbying from the financial and corporate sector who definitely know what they don't want and there has been lobbying from groups like Occupy the SEC who have pointed out the ways in which rules can be watered down to the detriment of the common good. 

Many are saying that the Dodd-Frank bill will not be enough to ensure a safe financial system.  Looking at the CFTC which is chaired by Gary Gensler, we can see the problems that can arise.  The Commission had to fight for resources and people in order to do their job competently.  Now we have a US district judge sending back the limits rule to the CFTC because he says the Commission "had no mandate to introduce the rule without showing it was necessary."

When Congress passes a financial reform bill and gives various agencies the task of fleshing out the rules, how is it that a judge can exert his authority over any of the  rules?
Goldman Sachs Group, Inc.: CFTC's Gensler to push on with position limits
By Douwe Miedema and Huw Jones - 4-traders

Gary Gensler, chairman of U.S. regulator the Commodities Futures Trading Commission (CFTC), vowed to push ahead with a new rule to curb speculation in commodity markets after a court threw out the CFTC's plans last week.

Gensler, who was travelling in Europe, told Reuters in an interview that the U.S. Congress had issued a clear mandate to the CFTC to introduce limits on the positions commodity traders can hold.
On Friday U.S. District Court Judge Robert Wilkins sent the limits rule back to the CFTC two weeks before it was to take effect, saying the watchdog had no mandate to introduce it without showing it was necessary.

"We should continue forward and get advice from our attorneys on how to do that. When judges rule, we consider what to do, we consider whether to appeal and so forth and move forward," said Gensler, a former Goldman Sachs banker.

"They (position limits) help protect the markets and help promote market integrity, and I look forward to working with my fellow commissioners to do just that," he said.

Bart Chilton, one of five CFTC commissioners, said in Rome that he thought the CFTC should "immediately" appeal against the court decision and seek a stay so that it could go forward.
It should also start drafting yet another rule to address the concerns of the court, Chilton said on Tuesday.

Read the entire article here


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