Because trading in derivatives was at the heart of the 2008 financial meltdown, the Dodd-Frank financial reform bill drastically expanded the powers of the CFTC to oversee and regulate this trillion dollar market. However, congress’ budget hawks threaten to leave investors and the markets largely unprotected. The Wall Street Journal reported today that the CFTC may have to forego both improvements to a technological overhaul and a potential increase in staff. With less technology and fewer bodies, how can the CFTC adequately regulate these burgeoning markets?
Hmmmm. Budget hawks, tea party surrogates for the most part, now find themselves in bed with billionaire investors and millionaire hedge fund managers. Was that why they came to Washington? The CFTC needs more money, a lot more money to fulfill its responsibilities. A little bit of regulation can go a long way toward safer markets and stability for main street.
Assisted by Zachary Kady