Speculation Rule Called Waste in Republican Representatives' Letter to the CFTC

Republican Representatives Scott Garrett of New Jersey, Spencer Bachus of Alabama, and Jeb Hensarling and Randy Neugebauer, both of Texas, submitted a letter to the CFTC in which they sought an accounting of the costs of the position limits rule. According to the letter, speculation limits for oil, natural gas and other commodities reflect wasteful spending by the CFTC. The representatives asked the CFTC to provide information as to the time spent on the position limits rule and the total amount it cost to complete the rule and defend it in court.

The letter notes that the CFTC is requesting a 50% increase in its budget and asserts that the CFTC is wasting its resources on rules that are not related to the financial crisis.

View letter in full here (links externally to PDF).

See also related news items: (i)news item on the position limits case and (ii)letter by the same group of representatives asking Treasury to publish its determination as to the FX transactions that would be deemed "swaps."