In what smacks of politically motivated efforts to rein in Dodd Frank through the use of other legislation, the head of the CFTC and its lead Congressional overseer are engaged in a public spat with significant ramifications for derivatives markets.
Timothy Massad, the head of the Commodity Futures Trading Commission, was showered with praise for the past year by Representative K. Michael Conaway, the Texas Republican who leads the House committee overseeing the agency. In recent weeks, the relationship hit a snag...when Conaway advanced legislation, typically enacted every five years, that lays out the scope and power of the CFTC’s ability to regulate banks, exchanges and other traders. The tussle comes as the House moves toward considering Conaway’s legislation, which would determine how the CFTC sets rules for...companies that trade derivatives. The Republican-led House is planning for a vote next week on the bill, which also was opposed by the ag panel’s top Democrat and Treasury. President Barack Obama would veto the legislation if Congress passed it, the White House said on Tuesday.