U.S. Senator Saxby Chambliss (R-Ga.), Ranking Republican Member of the Senate Agriculture Committee, today received testimony during a Senate Agriculture Committee hearing on reforming regulations of the U.S. financial markets. The committee heard from several witnesses including Gary Gensler, Chairman of the Commodity Futures Trading Commission (CFTC), which is the agency charged with regulating derivatives markets. In his opening remarks, Sen. Chambliss noted that recent market volatility and the financial meltdown make the case for more market transparency.
"The volatility that we have seen recently in some markets warrants extensive analysis, and possibly some regulatory changes," said Sen. Chambliss. "I also believe this committee should explore how most effectively to regulate swaps, some of which are statutorily excluded from CFTC regulation and oversight. If Congress is truly interested in addressing the problem as opposed to politicizing a solution, we can no longer ignore the complexities of these markets. We must devote time to understanding these instruments and their applications."
Sen. Chambliss also addressed the concern of pending financial regulatory reform discussions conflicting with the Farm Credit Act, which is under the jurisdiction of the Senate Agriculture Committee. The draft legislation could potentially affect the Farm Credit Administration and the entities it regulates including the Farm Credit System and Farmer Mac.
"We know that the Farm Credit System and Farmer Mac did not cause or contribute to last year's financial crisis, and they have done a good job fulfilling their congressionally mandated mission of providing competitive credit to farmers, ranchers and rural America," said Sen. Chambliss. "I look forward to working with our colleagues on the Senate Banking Committee to address our concerns with the financial regulatory reform package."