Speculators

Cantwell Introduces Legislation to Help Stop Abusive Speculation Practices

November 10,2009 -- WASHINGTON – Today, U.S. Senator Maria Cantwell (D-WA), together with Senators Ron Wyden (D-OR) and Bernie Sanders (I-VT), proposed legislation empowering state gambling regulators and attorneys general to examine unregulated derivatives trading and take appropriate action to protect citizens from practices which can harm the foundations of our economy. As part of a broader effort by Congress to pass comprehensive financial regulatory reform, Cantwell’s proposal treats derivatives trading for what it is: a sophisticated form of gambling.    » read more »

Letter Sent to House Financial Services Committee Chairman Barney Frank

October 14, 2009 -- Washington, DC - In a letter sent today to House Financial Services Committee Chairman Barney Frank (D-MA), U.S. Congressmen Bart Stupak (D-Menominee) and Maurice Hinchey (D-NY) called for strong provisions to protect consumers and the overall economy from the abusive practices of energy speculators.

Stupak and Hinchey were joined by eight other members of Congress in encouraging Frank to strengthen provisions in draft legislation to reform the over-the-counter (OTC) energy markets.

The letter was sent to Frank in advance of a House Financial Services Committee markup of the legislation.    » read more »

Sanders Warning on Speculators: ‘They’re Back!’

WASHINGTON, June 22 – Senate Republicans today blocked consideration of an amendment by Senator Bernie Sanders (I-Vt.) to require federal regulators to use emergency powers to curb oil price speculation.

“What are they afraid of? Who are they trying to protect?” Sanders asked.

“There is mounting evidence that the run-up in oil prices has little to do with the fundamentals of supply and demand and everything to do with excessive speculation by some of the same Wall Street firms that received the largest taxpayer bailout in the history of the world,” Sanders said. “They're back,” he warned.    » read more »

BURLINGTON, Vt., May 29 – As crude oil prices jumped to the highest level in six months, Senator Bernie Sanders urged federal regulators yesterday to stop speculators from artificially driving up prices.

Sanders said the Commodity Futures Trading Commission should use its emergency powers – which include the authority to impose speculation limits, increase margin requirements, and suspend trading – in order to ensure that oil prices accurately reflect supply and demand.

“I hope you will seize this opportunity to redefine the CFTC as a strong regulator that will do everything within its power to benefit consumers,” Sanders said in a letter to Gary Gensler, the commission’s new chairman.    » read more »

At Energy and Environmental Advisory Committee, Program Director Tyson Slocum Will Advocate Reining in Financial Speculators

May 13, 2009 -- WASHINGTON, D.C. – Tyson Slocum, director of Public Citizen’s Energy Program, today begins his service to the U.S. Commodity Futures Trading Commission’s Energy and Environmental Markets Advisory Committee. In this capacity, Public Citizen will be providing advice to federal regulators on how best to regulate energy commodity markets and emerging carbon emission markets as part of proposed cap and trade climate legislation.    » read more »

Speculators Are Responsible for Market Turmoil, Public Citizen Energy Director Tells House Committee

Feb. 3, 2009 -- WASHINGTON, D.C. - Congress must reregulate the energy markets if it wants to prevent speculators from causing massive swings in oil, gasoline, natural gas, electricity and other energy prices, which hit $147 a barrel in July before dropping 75 percent in just five months, Tyson Slocum, director of Public Citizen’s Energy Program, told a U.S. House committee today.    » read more »

Presidential Approval to Release Oil from Strategic Petroleum Reserve would have most Immediate Impact at the Pump

August 1, 2008 -- Washington, D.C. – U.S. Senator Russ Feingold (D-WI) is urging President Bush to bring immediate relief at the gas pump. Feingold joined 35 other Senators in sending a letter to the President, authored by Senator Richard Durbin (D-IL), calling on the President to use his emergency authority to immediately release oil from the Strategic Petroleum Reserve (SPR).

Gas pump, Petrolia, California: Photo by gerry la Photo by gerry la londe-berg (CC)-berg (CC)    » read more »

As President, Barack Obama will restore common-sense regulation to ease the impact of soaring gas prices

June 22, 2008 -- Chicago, IL - Senator Barack Obama today announced his plan to crack down on excessive energy speculation and fully close the "Enron Loophole" to ease the impact skyrocketing gas prices.

California gas prices, June, 2008: Photo by .pie (CC)    » read more »

June 17, 2008 -- WASHINGTON, D.C. - United States Senator Dick Durbin (D-IL) released the following statement today, after hearing the testimony of Walter Lukken, Chairman of the Commodity Futures Trading Commission’s (CFTC), before a joint hearing of Durbin’s Appropriations Subcommittee on Financial Services and General Government and the Senate Agriculture Committee.

“Increasing evidence shows that the run-up in crude oil prices and gasoline is being driven by larger trader banks, pension and hedge funds. Speculation may have as much, if not more, to do with high gas prices than any Saudi Sheik."    » read more »

Sends Letter to FTC Chairman about potential price gouging

June 17, 2008 -- WASHINGTON, DC - At a time when Pennsylvanians are faced with skyrocketing gas prices, U.S. Senator Bob Casey (D-PA) today sent a letter to William Kovacic, Chairman of the Federal Trade Commission (FTC) regarding the potential of price gouging and price manipulation.

“I hope that you and I can work together to give the FTC the tools it needs to investigate and help prosecute companies that are adopting questionable business strategies,” Senator Casey wrote. “The Unites States Congress and the FTC have an obligation to provide consumers with the assurance that whatever price they are paying at the pump, they can be certain they aren't being taken for a ride.”    » read more »

Measure would level the playing field in energy futures markets

June 13, 2008 -- Washington, DC – In the wake of growing concerns about the impact of speculation, U.S. Senators Dianne Feinstein (D-Calif.) and Ted Stevens (R-Alaska) have introduced legislation to require the Commodity Futures Trading Commission (CFTC) to impose the same position limits on institutional investors to which other investors now are subject. This legislation would essentially level the playing field in energy futures markets.

Under current law, CFTC is required to impose speculation limits on the size of energy trader positions. However, in practice, CFTC regularly exempts institutional investors from position limits, when investors execute their trades through brokers or dealers.    » read more »

June 3, 2008 -- In remarks presented at a High-Level Conference on World Food Security in Rome, International Monetary Fund (IMF) Managing Director Dominique Strauss-Kahn today warned that high food prices are a serious humanitarian concern as well as a source of macroeconomic instability affecting budgets, trade balances, prices and incomes almost everywhere in the world.

He urged donor governments and agencies to move swiftly to support appropriate food aid, particularly for the world's poor, calling effective action a "moral and economic imperative."    » read more »

BURLINGTON, June 2 – Senator Bernie Sanders (I-Vt.) said today that excessive speculation on oil futures by Wall Street hedge funds and such major financial investment houses as Goldman Sachs and J.P. Morgan Chase are driving oil and gas prices much higher than they should be based on supply and demand fundamentals.

Gas prices in Elmont, New York, June 2, 2008: Photo by scarlatti2004 (CC)    » read more »

June 2, 2008 -- With the summer harvest season right around the corner, and roadside produce stands popping up at country intersections across the state, the end of spring is a mouthwatering time to think about Michigan agriculture.

When, after months of delays, Congress recently passed the Food, Conservation and Energy Act of 2008, also known as the Farm Bill, the season was appropriate. This critical legislation – which was passed over a presidential veto – will offer a boost to the Michigan farmers who sell their produce locally and who send Michigan-grown agriculture across the country. The bill will also crack down on speculators who are driving high energy prices, and offer much-needed support for conservation, biofuels and nutrition programs.    » read more »