(2010-10-22) Cftc Judge Painter Accuses Levine Bias

In a notice recently released by the CFTC, (retiring Judge) George Painter said Judge Bruce Levine, his longtime colleague, had a secret agreement with a former Republican chairwoman of the agency to stand in the way of investors filing complaints with the agency. "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," Painter wrote. "A review of his rulings will confirm that he fulfilled his vow," Painter wrote... Gramm (wife of Phil Gramm) was head of the CFTC just before president Bill Clinton took office. She has been criticized by Democrats for helping firms such as Goldman Sachs and Enron gain influence over the commodity markets. After leaving the CFTC, she joined Enron's board.

Painter also attached a December 2000 Wall Street Journal story by Michael Schroeder titled, “If you got a beef with a futures broker, This Judge Isn’t for You—In Eight Years at the CFTC, Levine Has Never Ruled In Favor of an Investor” that details Levine’s penchant for favoring brokers over investors seeking reparations.

Painter's argument may be undermined by his apparent problems with alcoholism and mental illness. (Though that claim is being made by his wife who is divorcing him...) More on that aspect.

Oct26: much more.