Senator STEWART. I would hope you wouldn't. It would be my personal plea to you not to rush into judgment. I have got some other questions, but because of time, I will submit those at a subsequent date. [Whereupon, at 1:30 p.m., the hearing was adjourned.] MARGIN REQUIREMENTS FOR TRANSACTIONS IN FINANCIAL INSTRUMENTS FRIDAY, MAY 30, 1980 U.S. SENATE, COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS, Washington, D.C. The committee met at 10 a.m., in room 5302, Dirksen Senate Office Building, Senator William Proxmire (chairman of the committee) presiding. Present: Senators Proxmire, Stevenson, Stewart, Garn, Tower, and Kassebaum. The CHAIRMAN. The committee will come to order. We are honored and pleased to have as a panel this morning four distinguished experts in the field representing the agencies-or the institutions I would say that do the work here and have to live with whatever action we take: Clayton Yeutter, president of the Chicago Mercantile Exchange; Robert K. Wilmouth, president of the Chicago Board of Trade; W. N. Vernon III, Kansas City Board of Trade; and Lee Berendt, president of the Commodities Exchange, Inc. We also have the distinguished former governor of the Commodity Exchange, Inc., Dr. Andy Brimmer. We are glad to see you, Brimmer. Mr. BRIMMER. Thank you, Mr. Chairman. The CHAIRMAN. Dr. Yeutter, would you like to start off? I would appreciate it, gentlemen, if you could confine your opening remarks to just a few minutes if possible. We can put your statement in full in the record so we can proceed to questions because we have a big agenda this morning. Mr. YEUTTER. Mr. Chairman, if it's all right with you, I'd like to suggest that Mr. Berendt begin because he's going to give a summary of the silver situation and set the stage for what follows. STATEMENT OF LEE H. BERENDT, PRESIDENT, COMMODITIES EXCHANGE, INC. Mr. BERENDT. Mr. Chairman and members of the committee. My name is Lee H. Berendt and I am president of Commodity Exchange, Inc., better known as Comex. Accompanying me today are Dr. Andrew Brimmer, formerly a public member of the Comex Board of Governors and chairman of the Comex Special Silver Committee and Control Committee, and Mark Buckstein of the law firm of Baer, Marks & Upham, general counsel for Comex. Initially, let me express my appreciation to this committee for its invitation to testify today. I will attempt to clarify many of the misconceptions that seem to have developed relating to silver futures markets. My remarks will be directed to the events in the (183) silver futures markets on Comex and on the Board of Trade of the city of Chicago, better known as the Board of Trade, from September 1979 through March 1980, culminating in the price declines during the week of March 24, 1980. We have furnished to this committee two documents entitled "Statement of Commodity Exchange, Inc." and "Chronology of Activities Relating to the Silver Market from September 1979 through March 1980." I respectfully request that both of those documents be included in the record of these hearings. The CHAIRMAN. Without objection, that will be done. name is Lee H. Berendt and I am President of Commodity Exchange, Inc., better known as "Comex". Accompanying me today are Dr. Andrew Brimmer, formerly a public member of the Comex Board of Governors and Chairman of the Comex Special Silver Committee and Control Committee, and Mark Buckstein of the law firm of Baer Marks & Upham, general counsel for Comex. My Initially, let me express my appreciation to this Committee for its invitation to testify today. I will attempt to clarify many of the misconceptions that seem to have developed relating to silver futures markets. remarks will be directed to the events in the silver futures markets on Comex and on the Board of Trade of the 'City of Chicago, better known as the Board of Trade, from September 1979 through March 1980, culminating in the price declines during the week of March 24, 1980. We have furnished to this Committee two documents entitled "Statement of Commodity Exchange, Inc." and "Chronology of Activities Relating to the Silver Market from September, 1979 through March, 1980." I respectfully request that both of those documents be included in the record of these hearings. The Comex Statement includes extensive memoranda 64-891 0 - 80 - 13 |