Peterson says financial reg reform necessary
House Ag Committee Chair Collin Peterson opened a series of hearings Thursday on the U.S. Treasury’s proposed bill regulating over-the-counter derivatives markets. Excessive speculation is blamed for the wildly fluctuating commodities prices last year, and seen as a contributing factor to the nation’s financial crisis. The House passed a bill regulating the over- the-counter derivatives markets back in February.
In his opening statements, Peterson said some of the Treasury’s ideas “can contribute to much-needed legislation that gives the American people the confidence” that the markets are being overseen by strong regulators.
But ranking member Frank Lucas, says he has doubts, and worries that the end-users, consumers, will pay the price of too much regulation. And, Lucas has other concerns, “Why do we need to go beyond increasing transparency to government regulators? Instead of mandates and prohibitions, we should encourage people to trade and clear in healthy, liquid American markets. Mister Chairman, over the next few days I hope to learn the answers to some of these questions.”
Peterson made it clear that he’s seeking change, “I thank the gentleman, and when this whole system collapses again, I hope people will remember the statement – because I’m afraid we’re heading in the same direction.”
According to CNBC, Peterson told reporters Thursday that House Financial Services Committee Chair Barney Frank hope to bring a financial regulation reform bill to the House floor by early November. Peterson and Frank released a “concept paper” on financial regulation reform in August.