Obama on the "Enron Loophole"

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evince

Truthmatters
http://thepage.time.com/obama-release-on-enron-loophole/



Obama Release on “Enron Loophole”Obama Announces Plan to Fully Close the Enron Loophole, Crack Down on Excessive Energy Speculation

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

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. The Enron Loophole was created by McCain campaign co-chair Phil Gramm at the behest of Enron—just one example of the special interest politics that put the interests of Big Oil and speculators ahead of the interests of working people. And the American people have seen the results: record corporate profits while Americans pay record prices at the pump.

“For the past years, our energy policy in this country has been simply to let the special interests have their way—opening up loopholes for the oil companies and speculators so that they could reap record profits while the rest of us pay $4.00 a gallon,” Senator Obama said. “My plan fully closes the Enron Loophole and restores common-sense regulation as part of my broader plan to ease the burden for struggling families today while investing in a better future.”
 
key part of artical:

As President, Barack Obama will go beyond the changes included in the recently-passed Farm Bill and fully close the Enron loophole by requiring that U.S. energy futures trade on regulated exchanges. He will call for new, disaggregated data on index fund and other passive investments to increase transparency and oversight of the growing number of institutional investors participating in commodities futures markets. And he will support legislation directing the CFTC to investigate whether additional regulation is necessary to eliminate excessive speculation in U.S. commodities markets, including higher margin requirements and position limits for institutional investors.

Ø Ensure That U.S. Energy Futures Cannot be Traded on Unregulated Offshore Exchanges: CFTC oversight of oil market speculation is also limited by rules that allow energy traders to engage in unregulated transactions through foreign subsidiaries of U.S. exchanges. Currently, about 30 percent of U.S. oil futures trades fly below the regulatory radar because they are transacted on a U.S. exchange that works through a subsidiary in London. Similar arrangements are being pursued by U.S. exchanges in partnership with Dubai as well. Barack Obama would limit the price impacts of excessive speculation by preventing traders of U.S. crude oil from routing their transactions through off-shore markets in order to evade speculation limits and also impose reporting requirements.

Ø Work with Other Countries to Coordinate Regulation of Oil Futures Markets: As the global energy market expands and trading for oil futures increases, Barack Obama believes we must work with our other countries to establish uniform approaches to avoiding excessive speculation in commodities futures markets. As President, he would work through the International Organization of Securities Commissioners (IOSCO) and other international organization to harmonize regulations across countries. This effort will help to ensure that as the U.S. strengthens oversight and transparency in U.S. exchanges, these efforts are not undermined by overseas trading subject to lax regulations.

Ø Call on the Federal Trade Commission and Department of Justice to Vigorously Investigate Market Manipulation in Oil Futures. In 2007, Senator Obama supported legislation that gave the Federal Trade Commission (FTC) new authority to investigate and pursue price manipulation in oil markets. However, even in the face of record oil prices and growing concerns about excessive speculation, the Bush Administration has failed to utilize these new powers. Barack Obama does not believe we cannot afford to wait weeks and months more to vigorously investigate whether energy traders and oil companies manipulating the market at the expense of consumers. He is calling on the FTC to immediately expedite its investigation into market manipulation, including in the oil futures markets. He is also calling on the Department of Justice to open an investigation into whether energy traders have been engaged in illegal activities that have helped drive up the price of oil and food.
 
Problem with this idea is that it only limits US from engaging in some of this speculation. It will do nothing to prevent outside interests such as china to continue.

And if they go to far and make it difficult for us companies who rely on securing oil prices for years out for there business (futures contracts) it will put a international competitive disadvantage in place.
 
Topspin said:
you don't understand economics because YOU SKIPPED COLLEGE
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And that has what to do you you smelling wood burning ? or my reply ?

Besides I chose another route around college.
and also had my route pretty much decided for me as well.

I make $75/hr. working on my third million. spent my first one, have my second and starting on my third. What do I need college for at this stage of the game ?


I do have college trust funds set up for the grand children though.
 
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Chapdog said:
Problem with this idea is that it only limits US from engaging in some of this speculation. It will do nothing to prevent outside interests such as china to continue.

And if they go to far and make it difficult for us companies who rely on securing oil prices for years out for there business (futures contracts) it will put a international competitive disadvantage in place.
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I think he could get international buy in for something like this.
 
no way. its a free for all in the markets. people who have good morals in everything else they do will leave those morals at the door when it comes to there personal wallets.

U cant restrict the US to play the same way as the rest of the world. It will only hurt us worse.
 
Chapdog said:
no way. its a free for all in the markets. people who have good morals in everything else they do will leave those morals at the door when it comes to there personal wallets.

U cant restrict the us to play the same way as the rest of the world. It will only hurt us worse.
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So we are substandard and cannot exist with the rules the rest of the world uses ?
 
people who have good morals in everything else they do will leave those morals at the door when it comes to there personal wallets.



Which is why the markets have to be carefully regulated.
 
uscitizen said:
So we are substandard and cannot exist with the rules the rest of the world uses ?
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u cant limit the us companies ability to buy oil futures contracts and expect them to compete against international companies that have no restrictions.

when a manufacturing company that requires oil plans out 5 years how can they expect to compete if they cant lock up there oil prices ahead of time.
 
Chapdog said:
u cant limit the us companies ability to buy oil futures contracts and expect them to compete against international companies that have no restrictions.

when a manufacturing company that requires oil plans out 5 years how can they expect to compete if they cant lock up there oil prices ahead of time.
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you can make sure that those companies don't have access to US markets which would level the playing field.

I think they should do this with food futures as well. If you get more countries to agree to it you'd restrict volatility in the markets. The last thing politicians want is people out the wazzoo for gas and food.
 
cawacko said:
Would you care to site where he said that because that is not what he said.
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this is his quote, which to me means we cannot play bu the same rules the rest of the world does and succeed.

" U cant restrict the US to play the same way as the rest of the world. It will only hurt us worse."

Tell me what that means please.
 
uscitizen said:
this is his quote, which to me means we cannot play bu the same rules the rest of the world does and succeed.

" U cant restrict the US to play the same way as the rest of the world. It will only hurt us worse."

Tell me what that means please.
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If you read it in context its quite clear he miswrote a word. He was saying you cannot put laws in place against U.S. companies that puts them at a competitive disadvantage globally.

If I am wrong I hope he comes on here and clarify's.
 
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