Lawmakers prepare bill to fully fund CFTC
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WASHINGTON, Dec. 8- Representatives Rosa DeLauro (D-Conn.), Peter Welch (D-Vt.) and Leonard Boswell (D-Iowa) are introducing legislation to fully fund the CFTC so it can regulate the risky financial transactions that contributed to the 2008 financial crisis, the recent collapse of MF Global and the speculation-driven rise in energy prices.
The goal of the Wall Street Accountability Act through Sustainable Funding Act is to create a stable, sustainable funding mechanism for the CFTC.
“Americans want accountability from Wall Street,” DeLauro said in a press release today. “But this year's budget cuts to CFTC funding mean that it will not have the ability to regulate the risky financial transactions that caused the 2008 financial crisis and, more recently, the collapse of MF Global. That is why we are introducing the Wall Street Accountability Act through Sustainable Funding Act, which will ensure that the CFTC has the tools it needs to protect American consumers.”
Currently the Commission relies on an annual appropriation from Congress to fulfill its mandate. Its FY2012 budget was cut by 33 percent and further cuts would occur under the scheduled budget sequestration. The DeLauro/Welch/Boswell bill would create new funding mechanism for the CFTC modeled after the Security and Exchange Commission's funding source. Under their proposal, the CFTC would cover its annual budget by collecting transaction fees from all market participants.
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