Inspector General Report Reinforces Need For Legislation to Make IG's Independent
FOR IMMEDIATE RELEASE: June 3, 2009
CONTACT: Emily Barocas/202-225-7295
INSPECTORGENERAL REPORT REINFORCES NEED FOR LEGISLATION TO MAKE IG'S INDEPENDENT
Washington, DC - The Inspector General of theCommodity Futures Trading Commission (CFTC) released information this weekshowing that office completed just two investigations and updated one betweenOctober 1, 2008 and March 31, 2009, despite the recent economic crisis and theturbulence in the oil market. The Inspector General of the CFTC, likethat of many other regulatory agencies, is not a fully independentoffice. The position is hired by and serves at the privilege, of the headof the agency it is meant to oversee, making it near impossible for these officesto perform their duty of full oversight of these agencies. CongressmanJohn B. Larson (CT-01), Chairman of the House Democratic Caucus, hasintroduced legislation that would make the inspectors general of regulatoryagencies, like the CFTC, independent - giving them the tools they need to dotheir jobs and the freedom to act without fear of retribution. Thisreport from the CFTC is further evidence of the immediate need for thislegislation.
Congressman Larson said, "The inspectors general of ourregulatory agencies don't have the independence and resources they need to dotheir jobs. In a review of some inspectors general, my office found thaton average independent offices completed 117 investigations in 2008 - whiletheir non-independent counterparts completed just 12. This report from theInspector General of the CFTC confirms the conclusions of our survey. TheAmerican people have the right to know our regulatory agencies are working intheir best interest. I can think of no sector where honesty, independence andtransparency are more needed right now than our financial and commoditymarkets. We must give these inspectors general the tools they need to dotheir jobs."
Congressman Larson has proposed legislation that wouldelevate the Inspectors General of the CFTC, the Federal Reserve, the Securitiesand Exchange Commission, the National Credit Union Administration and Pensionand Benefit Guaranty Corporation, giving them the independence and capabilitiesthey need to properly oversee and monitor their respective agencies. Currentlythese inspectors are hired and function under the supervision of the heads oftheir respective agencies. This legislation would make them independententities with the freedom to pursue investigations without fear of repercussion.
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