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Debate over an energy speculation bill began Wednesday as financial industry lobbyists were mobilizing to oppose it. Democrats unveiled the bill as an answer to rising oil and gas prices, but Republicans have repeatedly tried to link any speculation bill with production-based solutions, such as increased oil drilling. The bill, authored by Senate Majority Leader Harry Reid (D-Nev.) and co-sponsored by Majority Whip Dick Durbin (D-Ill.) and Sens. Patty Murray (D-Wash.), Charles Schumer (D-N.Y.) and Byron Dorgan (D-N.D.), avoids the drilling question. Instead, it would add funding to the Commodity Futures Trading Commission (CFTC) for 100 new regulators “to detect, prevent and punish price manipulation and excessive speculation”; require more transparency in reporting requirements to the CFTC; and call for a long-term study on possible manipulation in the energy trading market. The bill was developed after a summit of sorts last week between Democratic leaders and oil industry lobbyists and other stakeholders. Its components were largely expected, and do not include any margin requirements on futures trading, which the business community had opposed. A key component on position limits on trading was revised early Wednesday. The bill now avoids any specific number, instead assigning the CFTC responsibility for setting such limits on speculative investors. Democratic leaders say that will allow "reasonable trading ... but will restrict excessive speculation." At least one financial industry lobbyist said he expected Reid to file cloture on the motion, block any Republican amendments and force a vote either Friday or next Tuesday. That would likely fail, followed by negotiations between Democratic and Republican leaders. |
