Sunday, October 24, 2010

« Wendy Gramm, Judge Bruce Levine & Criminal Behavior At The CFTC -- Attention Eric Holder, Federal Prosecutors »

If you haven't heard this story yet, be prepared for a new realm of outrage. When you read this keep in mind that the CFTC has only 2 judges.

Quietly last month, CFTC Case Judge, George H. Painter, issued a "Notice and Order" announcing his retirement from his position. In this notice Judge Painter wrote of a conspiracy at the highest levels of the CFTC (within the enforcement division), where a long time judge of 20 years has been working with past CFTC Chairs to rig the enforcement of the law by never (not once in 20 years) finding anyone guilty of market manipulation. We must be talking about tens of thousands of cases, to put the size of these crimes in scope.

Here are Judge Painter's words:

"There are two administrative law judges at the Commodity Futures Trading Commission: myself and the Honorable Bruce Levine. On Judge Levine's first week on the job, nearly twenty years ago, he came into my office and stated that he had promised Wendy Gramm, then Chairwoman of the Commission, that we would never rule in a complainant's favor. A review of his rulings will confirm that he has fulfilled his vow. Judge Levine, in the cynical guise of enforcing the rules, forces pro se complaints to run a hostile procedural gauntlet until they lose hope, and either withdraw their complaint or settle for a pittance, regardless of the merits of the case"

"In light of these unfortunate facts, if I simply announced my intention to retire, the seven reparation cases on my docket would be reassigned to the only other administrative law judge of the Commission, Judge Levine. This I cannot do in good conscience. Accordingly, I recommend that the Commission request the services of an administrative law judge to be detailed to the Commission from another agency."

His request was granted, and his cases were not assigned to Judge Levine.

Wendy Gramm is a former Enron board member, and former head of the CFTC (1988-1993), and the wife of deregulation neocon Phil Gramm. Here's what Barry Ritholtz said about Wendy Gramm:

A reminder to those of you who may be unfamiliar with this particular corporate harlot: Gramm was not only the former CFTC chair, but she was an Enron board member and wife of deregulation architect Phill Gramm, who for reasons unknown to decent society, is gainfully employed as a fluffer at UBS, helping to further besmirch the reputation of that bailed out firm.

Nice one, Barry!

Levine Notice - pdf

Judge Painter Retirement Letter, WSJ Article on Judge Lynch




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