About Time the Feds Investigated Energy Futures Market
By admin - Posted on June 2nd, 2008
Statement of Joan Claybrook, President, Public Citizen
May 30, 2008 -- "We applaud the Commodity Futures Trading Commission (CFTC) for publicly acknowledging what most educated observers have been saying for months: Wall Street speculators are reaping unconscionable profits by exploiting and manipulating the unregulated energy trading markets.
Commodity traders have pushed oil prices far higher than what can be explained by basic supply and demand. Under mounting pressure from Congress, the trading commission announced this week that it has been investigating oil trading practices for the past six months.
Forgive us, however, if we remain a bit cynical. We can’t get too excited about the trading commission doing exactly what it’s supposed to do, which is to investigate irregularities in the futures market. Its announcement is similar to the local Fire Department putting out a statement that it is now going to start responding to fires.
It’s not difficult to trace the root of today’s crisis. It was the deregulation of the energy trading markets – pushed through Congress in 2000 at the behest of Enron by its political allies – that has allowed oil companies and financial firms to manipulate prices with little regulatory oversight.
The timing of the CFTC announcement makes us question the trading commission’s sincerity. Why did the commission wait to speak up until after the Memorial Day holiday, when gas prices have been growing exponentially?
What is yet to be seen is whether the CFTC will aggressively root out wrongdoers, issue subpoenas and hold traders accountable by pursuing stiff civil and criminal penalties. We are also concerned that the commission’s investigation may focus solely on large, institutional investors and ignore the actions of oil companies and producers.
It is well past the time for the Bush administration and federal regulators to step in and end this frenzied, free-for-all in the energy futures markets. American consumers have suffered far too long. They need real, immediate solutions to this energy crisis and not mere lip service."
Source: Public Citizen
Bookmark/Search this post with:
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
Login to post comments
Related articles
- Senators Feinstein and Stevens Introduce Legislation to Limit Excessive Speculation in Energy Markets by Institutional Investors
- Barack Obama Announces Plan to Fully Close the Enron Loophole, Crack Down on Excessive Energy Speculation
- Senators Durbin, Harkin Hold Hearing on Oil Market Oversight
- Levin: Close the London Loophole Act Gives CFTC Clear Authority Over U.S. Commodities Traded on Foreign Exchanges
- Durbin: It's Time To Put More Cops On The Futures Market Beat
Latest stories
- Colin Powell Endorses Barack Obama for President: Video from this morning's appearance on Meet the Press
- Keating Economics
- Pelosi: The Legislation Has Failed But the Crisis Has Not Gone Away; We Must Work in a Bipartisan Way to Pass New Legislation
- Congressman Hoyer Statement Following Vote on Emergency Economic Stabilization Act
- Senator McCaskill Calls for Greater Accountability on Wall Street
- Senator Bob Casey Statement on Bailout Bill
- Senator Hillary Clinton Calls for Bipartisan Action on Economic Crisis
- Congress Passes Obama, Murkowski, Allen Bill to Ban Dangerous Mercury Exports
- Barack Obama Statement on Financial Plan Breakthrough
- Barack Obama Calls on VA Secretary to Provide Critical Data on Iraq and Afghanistan Veterans to Improve Veterans Services
Yes We Can
Yes We Can:
