An interesting proposal to increase funding for the CFTC that would be tantamount to a US derivatives transaction tax.
Wall Street banks and other financial firms should pay new fees to bankroll their own government oversight, according to a member of the top U.S. derivatives regulator. Sharon Y. Bowen, a Democrat on the Commodity Futures Trading Commission, said Congress should let the agency set fees on banks and other companies that trade derivatives. Fees on firms that register with the CFTC and on specific trades would help the agency -- which says its $250 million budget is inadequate -- respond faster to industry requests, she said in testimony for a House Agriculture subcommittee hearing Tuesday. “Such a funding rubric would have the added benefit of no longer asking American taxpayers to directly foot the bill of setting regulations on the swaps and futures markets,” Bowen said. “Our lack of resources is hampering our ability to function.”
