Today, the House Agriculture Committee held a public hearing to review the impact of derivatives reform on end users and smaller financial institutions. This hearing comes at a pivotal point in the implementation of Title VII of the Dodd-Frank Act as the Commodity Futures Trading Commission (CFTC) moves from proposing rules to finalizing regulations.
Members of the Committee heard from a diverse group of witnesses representing community banks, public power companies, rural electric co-ops, and manufacturers who expressed concerns that the CFTC's regulations may go too far, imposing unnecessary costs on their businesses. The witnesses expressed concerns that these costs would be passed on to their customers in the form of higher costs.
"Today's witnesses confirmed our concerns that overreaching proposals will negatively impact the very businesses we're relying on to create jobs. If a rural electric cooperative finds itself in the same regulatory category as Goldman Sachs, the CFTC simply doesn't have it right. We need to bring some balance and common sense back to this process," said Chairman Frank Lucas.