2017: Fitzpatrick Voted To Reauthorize The Commodity Futures Trade
Commission Through 2021 While Also Requiring The CFTC To Conduct
Cost-Benefit Analysis Of Rules. In January 2012, Fitzpatrick voted for
legislation that reauthorized the CFTC through 2021. According to
Congressional Quarterly, "The bill reauthorizes the CFTC, requires the
agency to prepare cost-benefit analyses of all its proposed regulations
and makes several other changes to CFTC operations and procedures. Under
the measure, operations and activities of the CFTC are reauthorized
through FY 2021, at $250 million per year. (The FY 2016 appropriation
for CFTC was $250 million; the request was $330 million.) The bill
requires GAO to investigate the CFTC's resources and assess whether they
are sufficient to enable the commission to effectively carry out its
duties. It establishes an Office of the Chief Economist to be headed by
a chief economist appointed by the CFTC, which would perform functions
and duties as prescribed by the bill and the CFTC. It also explicitly
states that the agency's division directors 'serve at the pleasure' of
the CFTC." The vote was on passage. The House passed the bill by a vote
of 239 to 182. The Senate took no substantive action on the legislation.
[House Vote 54, 1/12/17;
Congressional Quarterly,
1/6/12; Congressional Actions,
H.R.
238]
Legislation Would Require The CFTC's Rules On Cross-Border
Derivatives Allow U.S. Companies To Trade In The Eight Largest
Foreign Markets With No Supervision As Long As Those Counties Have
U.S. Similar Oversight; Rep. Colin Peterson (D-MN) Said This Would
Lead To A "Race To The Bottom." According to Congressional
Quarterly, "Derivatives are contracts with values tied to an asset
at a designated point in time. The derivative may be tied to a
physical commodity, a stock index, an interest rate or some other
asset. Unregulated derivatives contributed to the financial turmoil
of 2008. Peterson also objected to provisions in the bill that would
limit the CFTC's authority to regulate cross-border derivatives
trading. The agency would be required to issue rules that allow U.S.
firms to carry out trades in the eight largest foreign markets
without U.S. supervision as long as those countries have market
oversight equivalent to the United States. He has said the provision
would encourage banks to shop around for countries with the least
stringent review and lead to a 'race to the bottom by multi-national
banks.'" [Congressional Quarterly,
1/12/17]
Democrats Note That The Requirement For Cost-Benefit Analysis,
Which Is Often Done But Not Required, Will Lead To Significant Legal
Challenges. According to Congressional Quarterly, "Opponents of
the bill, primarily Democrats, argue that it represents another GOP
effort to chip away at Dodd-Frank and undermine the CFTC's ability
to protect the public. The required cost-benefit analysis is
particularly problematic, they say, arguing that the CFTC already
conducts such analyses in certain instances and that codifying the
requirement to expand the frequency of such analyses, as well as the
factors to be considered, would open the commission up to constant
legal challenges and result in lengthy or indefinite delays in the
issuing of rules." [Congressional Quarterly,
1/6/12]