Bloomberg the Company

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

Deficit Fight Doesn’t Justify Shortchanging CFTC, Gensler Says

Don't Miss Out —
Follow us on:

March 17 (Bloomberg) -- Congressional efforts to reduce the federal deficit shouldn’t restrict funding for the Commodity Futures Trading Commission, which needs more money to avert a repeat of the credit crisis, CFTC Chairman Gary Gensler said.

“We recognize that the budget deficit presents significant challenges to Congress and the American public,” Gensler said today in remarks prepared for a House Appropriations Committee hearing in Washington. “But we cannot forget that the 2008 financial crisis was very real.”

The CFTC budget has been frozen at its fiscal 2010 level -- along with those of other federal agencies -- by a stalemate between Republicans aiming to cut spending and Democrats looking to fund implementation of the Dodd-Frank Act. The CFTC and the Securities and Exchange Commission are responsible for expanding oversight of derivatives under the regulatory overhaul.

Lawmakers moved to increase regulation of the derivatives market after largely unregulated trades helped spark the worst financial crisis since the Great Depression. Dodd-Frank, enacted in July, aims to reduce risk and boost transparency by having most swaps traded on exchanges and guaranteed by clearinghouses.

President Barack Obama has requested an increase to $308 million for fiscal 2012 and proposed user fees to help the CFTC carry out its responsibilities. The agency is currently operating under its $169 million budget for fiscal 2010 while the $261 million request for is tied up in congressional negotiations.

To contact the reporter on this story: Alan Bjerga in Washington at abjerga@bloomberg.net.

To contact the editor responsible for this story: Lawrence Roberts at lroberts13@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.