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If you enjoy the content at iBankCoin, please follow us on TwitterA day after President Obama called for increased oversight of speculation in energy markets, House Republicans struck back, at least indirectly.
On Wednesday, the House Financial Services Committee voted on budget legislation that would, among other things, repeal the Resolution Authority granted the Federal Reserve in the Dodd-Frank legislation and subject the Consumer Financial Protection Bureau to the annual appropriations process.
The developments speak to the starkly different philosophical approaches the two parties have regarding regulation of financial markets. They are related because the Commodity Futures Trading Commission (CFTC) was given authority in the Dodd-Frank Act to impose position caps on oil traders, beginning in January 2011.
These limits have not yet been implemented because the CFTC’s budget was slashed ahead of Dodd-Frank’s passage, says Leo Hindery, founder of InterMedia Partners, a private equity firm, and a former economic adviser to President Obama.
“Dodd-Frank was a painful bill to get passed,” Hindery recalls. “It didn’t do everything a lot of us wanted but, that said, it was a pretty good piece of legislation despite untold opposition.”
Unable to stop Dodd-Frank from becoming law, Hindery says its opponents, a.k.a. “Republicans”, are now trying to “gut” the legislation. (To be sure, one man’s “gutting” of legislation is another man’s attempt to cut the budget and let free market capitalism work.)
