LARSON CONTINUES TO ADVOCATE FOR REGULATING SPECULATORS, COMMENDS CFTC FOR INCREASES IN OVERSIGHT, BUT NEEDS TO GO FARTHER
FOR IMMEDIATE RELEASE: May 29, 2008
Contact: EmilyBarocas /202-225-7295/202-593-1377
LARSON CONTINUESTO ADVOCATE FOR REGULATING SPECULATORS, COMMENDS CFTC FOR INCREASES INOVERSIGHT, BUT NEEDS TO GO FARTHER
Washington, DC -- The Commodity FuturesTrading Commission announced today that it will increase its oversight over theforeign and domestic energy futures markets. This comes after Democrats in Congress have for months been calling forincreased monitoring and regulation of these markets that are driving up oiland gas prices. Congressman John B.Larson (CT-01), Vice Chair of theDemocratic Caucus, has been at the forefront of this fight, not onlyencouraging the CFTC to increase oversight, but proposing bold legislation thatwould take speculators out of the energy futures markets.
Congressman Larson said,
“I’m glad the CFTC isfinally stepping up to its responsibilities and taking action to regulate andmonitor the energy markets. In Congress,I, along with my Democratic colleagues, have been calling for the CFTC toprevent and prosecute abuses in the markets. I’ve seen the impact that manipulation in the futures markets is havingon the prices we pay at the pump. TheCFTC must do its part to protect the American consumer. I am glad it is beginning to heed this call.
“The CFTC’sannouncement today is part of the solution, but not the whole solution. Whilethis announcement today means the CFTC will finally start to share tradinginformation with other agencies regulating world markets, it is still not clearthat CFTC is willing to look into the massive amounts of over-the-countertrades or other transactions that are currently exempted or excluded from theiroversight.I will continue to move forward with my legislation that will take thespeculators out of the markets that the CFTC does not have the authority toregulate. It is those markets wheretrades happen without any oversight, where regulators have no power and wherespeculators are going wild driving up costs. My legislation would require anyone who invests in energy futures in over-the-countertrades be able to take inventory of the product.
“I heard executivesfrom the big oil companies admit before a hearing of the House Select Committeeon Energy Independenceand Global warming that speculation in the markets is a major factor in drivingup energy prices. Investment in thesemarkets has gone from $9 billion in 2000 to $250 billion today. Congress understands the impact this ishaving on our economy as a whole. Even the oil executives get it. I am glad the CFTC has finally come around tounderstand this as well.”
For more information on Congressman Larson’s legislationplease see the New York Times article here:
https://www.nytimes.com/2008/05/25/business/25maker.html?_r=1&ref=business&oref=slogin
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