Congress Gutted Financial Reform While Bloomberg Cleared Zuccotti Park
While Mayor Bloomberg was clearing Zuccotti Park with tear gas and riot police, Congress was sabotaging financial reform by slashing the budget of a key regulator, the Commodity Futures Trading Commission, Sidney Award-winner Mary Bottari of PR Watch reports:
On Capitol Hill, a similar rout was taking place in the dead of night. In a fast move that deals a serious blow to a key regulator in charge of Wall Street derivatives trading, Obama’s budget request for CFTC was cut by more than a third by GOP legislators eager to kill any oversight of Wall Street.
According to Politico, the administration had sought $308 million for the new fiscal year, but the amount is expected to come in closer to $205 million. [Truthout]
With a smaller budget, the CFTC will be hard pressed to reign in the super-banks that control most of the $600 billion derivatives market, JP Morgan Chase, Citigroup, Bank of America, and Goldman Sachs. The agency will struggle to keep up with Wall Street, let alone to prevent another financial crisis.
[Photo credit: Leo Reynolds, Creative Commons.]