Futures Trading and Securities and Exchange Commission battling Congress for financing

The Securities and Exchange Commission and Commodity Futures Trading Commission are intended to keep an eye on the financial industry. Wall Street got a newly empowered police force last year, with the passage of the Dodd-Frank Act. The fight over Congressional budgeting, however, could put these brand new regulators at a disadvantage. Article resource – Futures Trading and SEC fighting Congress for funding by MoneyBlogNewz.

An Act to get the economic climate in order

Keeping the economic climate together was the reason of the 2010 Dodd-Frank Act. Increased funding to keep that up was requested from both agencies. There was financing given in 2010. $1.1 billion was what the SEC received. The agencies have asked for millions more for the fiscal 2012 year. The purpose would be to get 1,000 brand new employees added on.

Obama’s suggested increase in funding

The first 2012 spending budget had CFTC and Securities and Exchange Commission getting additional financing. President Obama wanted this to happen. The $583 trillion derivatives sector would end up paying $117 million in per-trade fees each year to be able to fund additional oversight. Adding an additional $300 million in oversight funding to the agencies would have occurred too.

Financing unlikely with brand new spending budget

Funding to the agencies has been stripped down since Obama proposed it initially with funding to both agencies. A House panel is scheduled to hold hearings on the cost of implementing Dodd-Frank regulations on March 30, but by then the budget could be set. Over 200 individuals would lose their jobs from the Commodity Futures Trading Commission while Securities and Exchange Commission would have to stop hiring if the current budget bill passes. The economic recovery may get hurt with the "overly strict implementation" of financial regulation.

Information from

CNN

money.cnn.com/2011/03/01/news/economy/sec_cftc_funding/index.htm

Wall Street Journal

online.wsj.com/article/SB10001424052748703584804576144222589096178.html

Washington Independent

washingtonindependent.com/91650/senate-passes-landmark-financial-regulatory-reform-bill

Reuters

reuters.com/article/2011/02/28/us-finance-summit-neugebauer-idUSTRE71R7B920110228