FOR IMMEDIATE RELEASE: June 30, 2008
CONTACT: Emily Barocas/202-225-2265
CONGRESSMEN LARSON INTRODUCES LEGISLATION TO CREATE INDEPENDENT
INSPECTOR GENERAL AT TRADING COMMISION
Hartford, CT – Congressman John B. Larson (CT-01), Vice Chair of the Democratic
Caucus, announced today that he introduced legislation (H.R. 6406) that would elevate the Inspector General of the
Commodity Futures Trading Commission (CFTC) to give him or her independence and
greater authority to oversee the Commission’s activities. According to a GAO report Congressman Larson
requested, the CFTC has not been actively monitoring or investigating cases of
abuse in the energy futures market. This
has allowed rampant speculation to drive up the cost of oil completely
unchecked.
Congressman Larson said, “The CFTC has abdicated its responsibilities in monitoring and
regulating the energy futures market. An
Inspector General who has the necessary independence and resources to make sure
the CFTC goes back to work will go a long way towards putting our broken energy
markets back on track. For too long, the
CFTC has answered to Wall Street and K
Street. Now, they must answer to Main Street. ”
This simple legislation would broaden the powers of the
existing inspector general by taking them out from the traditional hierarchy of
the CFTC and giving him or her the independence to do the job properly.
Congressman Larson has been actively pursuing ways to rein
in the speculation in the energy markets that has driven the cost of a barrel
of oil to record heights. Earlier this
year he introduced legislation that would take speculators out of the “dark”
markets for energy futures. That
legislation would require anyone investing in these markets be able to take
receipt of the product in which they are investing. He also supported legislation on the floor of
the House of Representatives last week that would direct the CFTC to invoke its
emergency powers to oversee and regulate the “dark” markets.
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