Rep. Maloney statement on the President’s proposal to curb oil market manipulation
WASHINGTON, DC – Rep. Carolyn Maloney (D-NY), senior member of the House Financial Services Committee, today backed President Obama’s proposals to improve enforcement and curb manipulation in the oil futures markets.
“I applaud President Obama's plan to increase oversight and crack down on manipulation of the oil markets,” Maloney said. “At a time when instability and uncertainty in the Middle East is a major factor in the rise in oil prices, these proposals will help curb the temptation for traders to play on those uncertainties like a casino, artificially forcing oil prices skyward and hurting our economy.
“Congress should fund the expansion of surveillance and enforcement staff and the upgrading information technology at the CFTC to make it more likely that manipulators will get caught—and by making it hurt to get caught, increasing civil and criminal penalties from $1 million to $10 million—so we can help the CFTC function as it was designed to, as a cop on the beat.
“Congress should also grant the CFTC the authority to increase margin requirements in order to providing them with a prime tool to help reduce volatility and help prevent oil price manipulation.
My fear is that the Republican majority in the House of Representatives will prevent these straightforward actions from being taken.
“I support the President’s immediate executive action to expand public access to CFTC data, which will help us all better understand the markets in this crucial commodity,” Maloney said.
Read the full text of the President’s proposals here: http://www.whitehouse.gov/the-press-office/2012/04/17/fact-sheet-increasing-oversight-and-cracking-down-manipulation-oil-marke