LARSON GETS TOUGH ON SPECULATORS - INSPECTOR GENERAL MEASURE PASSED

FORIMMEDIATE RELEASE

September24, 2008

LARSON GETS TOUGHON SPECULATORS - INSPECTOR GENERALMEASURE PASSED

Washington D.C.- U.S. Representative John B. Larson (CT-01), Vice Chair of the DemocraticCaucus released the following statement after the passage of HR 6406, whichwill provide the Inspector General (IG) of the Commodity Futures TradingCommission (CFTC) with more power and autonomy to investigate CFTC’s regulationof the oil market.

“Itis crucially important, given our present economy, that this Congress doeverything that it can to restore oversight and review, and assure the Americanpeople that this is the people’s House and we’re watching what’s happening onWall Street on their behalf. We need tohold accountable those not acting in the best interests of the American peopleand who care only about their own financial gain at whatever cost.

“Overthe past eight years the Bush Administration has employed the partisan energyand economic policies of tax breaks to oil companies and the deregulation ofthe financial markets, which has collectively landed our economy in its presentposition. Today in the House throughDemocratic leadership, we passed a bi-partisan regulation that will put ourbroken system back on the road to recovery by giving the American people thetype of oversight on our energy and financial markets they deserve.

“Wehave seen the disastrous effects that can result when we allow the fox to guardthe hen house. This legislation is animportant step toward ensuring that there is some sunshine on the financial and“dark” commodities markets that will help to protect the future and wellbeingof the American people.”

HR6406 seeks to elevate the current Inspector General of the CFTC from a designatedIG to an established IG pursuant to Section 3 of the Inspector General Act of1978. Rather than being hired by and operating internal to the CFTC, this billwill elevate the IG to his own, independent office, adopting the same IGstructure that major US Departments like the Departments of Energy and Defenseutilize.

Undercurrent law, the Inspector General of the CFTC is appointed and serves underthe jurisdiction of the Chairman of the CFTC, the exact same individual andagency the Inspector General is accountable to oversee. This structureindirectly makes the IG dependent on the agency’s Chairman. This legislationwill ensure that the Inspector General of the CFTC has the ability to fulfillall of the office’s duties, with more independence and authority to investigateoverall agency ineffectiveness and abuse.

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