[Congressional Record Volume 157, Number 86 (Wednesday, June 15, 2011)]
[Extensions of Remarks]
[Pages E1109-E1110]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND 
               RELATED AGENCIES APPROPRIATIONS ACT, 2012

                                 ______
                                 

                               speech of

                          HON. JOHN B. LARSON

                             of connecticut

                    in the house of representatives

                         Tuesday, June 14, 2011

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill (H.R. 2112) making 
     appropriations for Agriculture, Rural development, Food and 
     Drug Administration, and Related Agencies programs for the 
     fiscal year ending September 30, 2012, and for other 
     purposes:

  Mr. LARSON of Connecticut. Mr. Chair, I rise today in support of 
fully funding the CFTC.
  According to Gene Guilford, Executive Director of the Independent 
Connecticut Petroleum Association, and former Reagan Energy Department 
Presidential appointee, gas prices should be $2.50. He goes on to say 
that 15 to 20 percent of the price of a barrel of oil is due to pure 
speculation.
  Even big oil executives agree, Exxon Mobil CEO and President Rex 
Tillerson recently testified that the price of a barrel of oil without 
speculation should be between $60 and $70. According to an April 2011 
analysis by Goldman Sachs, unregulated speculation adds over $20 per 
barrel to the price of oil.
  In my home state of Connecticut, 4 million gallons of gas are sold a 
day. That means every day my constituents are spending an extra $6 
million for speculation. In this fragile

[[Page E1110]]

economic time, I can think of many other important things Connecticut 
families can spend $6 million to buy instead of paying to support the 
greed of over speculations. With consistently some of the highest gas 
prices in the nation, Connecticut deserves better.
  One of the ways to reduce the price of gas is to end excessive 
speculation. The CFTC has a job to protect American consumers and 
through the Wall Street Reform legislation passed last Congress, they 
were tasked with implementing rules the market has to follow including 
ending excessive speculation and setting position limits.
  To carry these regulatory protections out, the CFTC needs funding. 
Republicans have not only written language to delay implementation of 
these protections, but now in the FY12 Appropriations bill they put 
forth legislation to cut the budget by 15 percent, 44 percent under the 
President's request. This is unconscionable, especially when CFTC is 
doing a good job.
  Less than a month ago, the CFTC charged 5 oil speculators with 
manipulating the price of crude during the record high gas prices in 
the summer of 2008. The Republican funding cut to the CFTC sends a 
strong message to the industry to continue the status quo. Not only 
will the cut prevent the agency from hiring the technical experts 
needed to implement new regulations, but will also reduce the overall 
size from 670 employees to under 600 employees.
  When President Bush left office, the CFTC oversaw a $40 trillion 
market. Today, the CFTC is tasked with overseeing a $300 trillion 
market. This is a 650 percent increase in the CFTC's responsibility, 
but at the same time their budget has only increased by 15 percent. It 
is irresponsible to take away funding leaving the agency stretched far 
too thin and inadequately prepared to deal with our ever more intricate 
market. Wall Street spent $34 million last quarter lobbying Congress in 
order to prevent implementation of new regulations, and it looks like 
their efforts have paid off.
  The health of our economy is no game. I am outraged by the actions of 
my colleagues. I support my amendment to fully fund the CFTC and reject 
this appropriations bill.

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