Yesterday in a hearing of the Financial Services Committee, Congressman Steve Pearce questioned Gary Gensler, Chairman of the Commodity Futures Trading Commission, and Robert Cook, Director of the Division of Trading and Markets at the U.S. Securities and Exchange Commission.
Under the 2010 financial regulatory reform law commonly referred to as "Dodd-Frank," the CFTC and the SEC have been charged with the regulation of derivatives trading. Rep. Pearce pointed out that during the botched bankruptcy of MF Global, Inc., the SEC and CFTC protected the top 2%, like banking giant JP Morgan Chase, instead of the 30,000 middle class Americans whose money was stolen from their accounts.
"We know what regulators will do in the future by what they've done in the past," said Pearce. "The President talks a lot about helping the 98%, but thirty thousand Americans--farmers, ranchers, miners, energy workers, and retirees--lost their hard-earned savings because of a decision to take care of a big bank instead of everyday Americans. How can we possibly trust those same decision-makers with billions more of Americans' investments? New Mexico's community banks and small businesses are stalling under regulations that put Wall Street before Main Street. Gensler and Cook repeated the President's empty words about protecting investors, but could not give an answer when I asked why they brazenly ignored the bankruptcy laws designed to protect everyday Americans."