Tight Funding Is Starving Financial Regulatory Agency, Outgoing Official Says

Though no stranger to budget battles, the Commodity Futures Trading Commission may have reached a saturation point at which its mission and agenda are being compromised.

According to an interview published in Friday’s Wall Street Journal, the agency is so “cash-starved” it is “being forced to delay cases, shelve certain probes and decided not to file charges against two former traders over J.P. Morgan Chase & Co.’s ‘London Whale’ trading case.”

Speaking after his final day on the job, CFTC enforcement director David Meister said the independent regulator is “absolutely undersized…. We will do everything we can, …but we have limited staff and limited resources. Ultimately it comes down to the math.”

The volume of enforcement actions CFTC filed in fiscal 2013 is down by one-fifth, Meister said. His enforcement division staff of 155 is down 10 percent from when he started in January 2011.

Republicans, since taking control of the House in 2011 following passage of the controversial Dodd-Frank Financial Reform Act, have sought to cut the CFTC’s budget and accused it of playing politics.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

    Download
  • The Big Data Campaign Trail

    With everyone so focused on security following recent breaches at federal, state and local government and education institutions, there has been little emphasis on the need for better operations. This report breaks down some of the biggest operational challenges in IT management and provides insight into how agencies and leaders can successfully solve some of the biggest lingering government IT issues.

    Download
  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

    Download
  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

    Download
  • Ongoing Efforts in Veterans Health Care Modernization

    This report discusses the current state of veterans health care

    Download

When you download a report, your information may be shared with the underwriters of that document.