The opposition against Gensler's rule-making is every bit as acrimonious as the opposition to Elizabeth Warren's ideas about the CFPB (Consumer Financial Protection Bureau). See Cohan's remarks about Warren here.
May both Warren and Gensler succeed in their goals of protecting the public against predatory practices!
The excerpt below of Kambiz Foroohar's article in Bloomberg is a fair-minded and balanced one which mentions the roadblocks faced by Gensler at the CFTC:
Gensler Evolving in Derivatives War
Sees No Deed Go Unpunished
By Kambiz Foroohar - Bloomberg Markets Magazine
Gary Gensler, chairman of the Commodity Futures Trading Commission, took his seat before a Senate appropriations subcommittee on May 4 to make his case for a $106 million budget increase.
Without the money, Gensler said, his agency wouldn’t be able to perform its new job of policing roughly $300 trillion in U.S. over-the-counter derivatives, a market that includes the credit-default swaps that helped push the U.S. economy into the worst recession in 70 years, Bloomberg Markets magazine reports in its August issue.
“In 2008, both the financial system and the financial regulatory system failed the test for the American public,” Gensler, 53, told the senators. “An investment in the CFTC is warranted, because, as we saw in 2008, without oversight of the swaps market, billions of taxpayer dollars may be at risk.”
Even before Gensler had a chance to make his rounds at the Republican-controlled House, he got its response. Representative Jack Kingston, a Georgia Republican, proposed a spending bill on May 23 that called for a 15 percent CFTC budget cut to $172 million.
Although the Dodd-Frank Wall Street Reform and Consumer Protection Act required the commission to write and enforce more than 50 new rules regulating derivatives trading and commodities futures, Gensler, who’d gotten an increase for the current year, needed to tighten his belt starting on Oct. 1, as at other agencies, Kingston said.
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Wall Street Profits
Wall Street has emerged as Gensler’s biggest nemesis. JPMorgan Chase & Co. (JPM), Bank of America Corp. (BAC), Citigroup Inc. (C), Goldman and Morgan Stanley controlled 96 percent of the $321 trillion derivatives contracts held by U.S. banks in the first quarter, the Office of the Comptroller of the Currency says. The $321 trillion notional amount represents the estimated value of the assets that underlie the derivatives.
Goldman and the others make more than $30 billion in annual profit in financial derivatives trading, according to financial consultant Oliver Wyman, a unit of Marsh & McLennan Cos., the world’s second-biggest insurance broker.
Dodd-Frank would weaken that grip. The law, which gives the CFTC regulatory powers over 80 percent of the U.S. derivatives market, pushes as much swaps trading as possible onto futures exchanges and to new trading platforms called swap execution facilities.
Dodd-Frank also specifies that most swaps trades be settled through clearinghouses, which require firms to pay membership fees, provide money to cover trades and have minimum amounts of capital. Before Dodd-Frank, banks, insurance companies and hedge funds weren’t required to set aside money to cover potential losses. They made their own agreements about how much collateral, if any, to put up. The CFTC is writing the rules that govern the specifics for its portion of the market.
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It is worthwhile reading the entire article here