U.S. Sen. Jim Webb (D-VA) on Monday joined 14 senators in a letter to federal financial regulators urging final implementation of the Dodd–Frank Wall Street Reform and Consumer Protection Act.
The letter directs the top five federal regulators to take stronger action to reduce excessive speculation, manipulation and systemic risk created by derivatives trading. Sen. Webb has also repeatedly called for federal regulators to curb speculation in crude oil markets, including his most recent letter to the Commodity Futures Trading Commission in March 2012.
“Nearly four years after trading in derivatives markets brought the United States economy to its knees, and nearly two years after the Dodd-Frank Act passed, these critical market protections should be in place and in force—but they are not,” the senators wrote. “Recent multi-billion dollar losses in the derivatives markets, such as those occurring at JPMorgan Chase, have reminded us of why we needed to replace our failed derivatives regulatory regime. If this can happen to JPMorgan Chase, which prides itself on its risk management capability, it can happen elsewhere.”
The letter was sent to U.S. Treasury Secretary Timothy Geithner, Federal Reserve Chairman Ben Bernanke, Securities and Exchange Commission Chairman Mary Schapiro, Commodities Futures Trading Commission Chairman Gary Gensler and Comptroller of the Currency Thomas Curry.
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