Tag: Timothy Massad

Senate Confirms Three New CFTC Commissioners

The US Senate Monday voted to approve the nomination of three new commissioners to the CFTC, including Timothy Massad, who will replace Gary Gensler as CFTC chairman. Mr. Massad had served from 2011 to October 2013 as the Assistant Secretary for Financial Stability at the Treasury Department and has overseen the Troubled Asset Relief Program created in response to the 2008 US financial crisis.

In addition, the Senate approved the nominations of Sharon Bowen and Christopher Giancarlo to serve as CFTC commissioners. While both Mr. Massad and Mr. Giancarlo were confirmed by voice votes, the Bowen’s confirmation proved more controversial, and she was ultimately confirmed by a 48-46 vote. Criticism of Ms. Bowen came mainly from the of the political spectrum, with Republican senators criticizing her role in overseeing a panel that denied compensation to victims of a $7 billion ponzi scheme.

The three new regulators will join Commissioners Mark Wetjen and Scott O’Malia on to fill out the CFTC’s five-member panel to continue the implementation of Dodd-Frank regulations begun under the oversight of Mr. Gensler.

Commissioners Unhappy With CFTC No-Action Letters

Several commissioners have spoken out over the CFTC’s no-action letters, claiming that many of them were instituted hastily, leaving little time to review or edit them.

The Commodity Futures Trading Commission has put in place almost 70 rules since the 2010 regulatory reform law was put into place. Of these rules, 36 were related to Dodd-Frank. However, within these 36 rules, over 200 no-action letters or other forms of guidance have had to be issued after the rules were instituted.

Some commissioners have defended the CFTC no-action letters, saying that their use was inevitable, as overhauling the operations of the $600 trillion dollar derivatives market is no small task. As former commissioner Micheal Dunn explained it to Risk.net, “You can’t make an omelette without breaking some eggs.”

Most commissioners agree that some no-action letters will be necessary. However, it seems for many commissioners, the issue revolves around how the CFTC no-action letters were instituted.

Commissioners have pointed out that while some of the no-action letters are only temporary, quite a few of them are indefinite or permanent. Many of the commissioners only received notice of the letters the night before they were issued, which has them feeling as though their input had not been considered over what is essentially a complete change in policy.

CFTC chairman nominee Timothy Massad recognized the need for a more streamlined and organized rule making process while being questioned at a confirmation hearing by the Senate.

While former CFTC chairman Gary Gensler spent most of his time putting many of the Dodd-Frank rules into place, it seems Massad’s focus will fall on figuring out how to amend and enforce these rules.

CFTC Chairman Nominee Timothy Massad Likely to Be Approved by Senate

It looks as though CFTC chairman nominee Timothy Massad will be approved by the Senate, after dispelling any doubt about his commitment and experience at a hearing in Washington yesterday.

The Senate was initially unsure about President Obama’s choice in replacement for Gary Gensler, based on a lack of experience in many of the areas the CFTC regulates. However, after discussing his relevant experience and vowing to uphold a strong enforcement program, it seems the Senate has found no reason to doubt the CFTC chairman nominee.

Massad, having recently lead the unwinding of the Troubled Asset Relief Program (TARP), feels that this, along with his time as a corporate finance attorney, has given him enough experience with regulation and derivatives to be able to handle the responsibilities of the CFTC position.

Massad will be replacing Gary Gensler as the new CFTC chairman. While Gensler spent his time as chairman putting a large portion of the rules instituted by the Dodd-Frank Act into play, it seems Massad’s time will be spent enforcing these rules.

Massad was one of several CFTC nominees to speak on their experience in front of the Senate yesterday, being joined by Sharon Bowen and J. Christopher Giancarlo, who also seem likely to be approved.

Should all three be approved, the CFTC will have a full staff in terms of commissioners once again, as the commission is currently operating with only three of the five it requires.

Senate Questions New CFTC Nominees

The three CFTC nominees waiting for approval to join the Commodity Futures Trading Commission are now facing some questions at a Washington approval hearing from the Senate over how much they will be willing to enforce the rules put in place by the Dodd-Frank Act.

Among the nominees is President Obama’s choice for CFTC chairman, Timothy Massad. Drawing skepticism from the senate, some are worried that Massad doesn’t have much of a record or policy in regards to what the CFTC regulates.

Outside of Massad, CFTC nominees Sharon Y. Bowen and J. Christopher Giancarlo, who are slated to take on roles as commissioners, will also be answering some questions for the Senate.

Among the concerns, it seems those involved in the matter are eager to hear about the CFTC nominees’ views on speculation in commodity markets and the reach of Dodd-Frank rules overseas.

Upon, approval, these CFTC nominees will significantly change the make-up of the Commission’s current leadership. The CFTC is already only operating with three of the five commissioners it’s supposed to, and with commissioner Chilton on his way out, they will actually be making up the majority of the Commission’s leadership.

Grain Industry hoping for More Lenient CFTC

Leaders in the grain industry discussed the future of the Commodity Futures Trading Commission (CFTC) at the Commodity Council Markets gathering recently.

With the CFTC currently going through major changes, it seems the grain industry is hoping it will lead to a more lenient Commission. And, as Mark Wetjen is currently taking over the reins, it’s very possible that this will be the case.

The CFTC has already lost chairman Gensler, and with commissioner Chilton is on his way out, the CFTC will be without its two most vocal proponents for a strict hold on the derivatives market.

Timothy Massad and Sharon Bowen, considered to be Wall Street lawyers, are currently slated to take over for Gensler and Chilton respectively, and are less likely to be as strict.

Gensler managed to push through upwards of 70 percent of all the rules the CFTC was required to write during his term according to Reuters, which will leave Massad with little more to do in terms of large scale change. And Commissioner O’Malia has stated that he is hoping that the CFTC can focus more on tweaking the rules put in place to make things easier before continuing with new reform.

The main cause of concern for the grain industry seems to be how the CFTC will be defining “hedging” which could seriously affect the way farmers use futures contracts to anticipate the buying and selling of grain.

Senate Planning to Elect Timothy Massad as CFTC Chairman

According to the Wall Street Journal, the Senate seems likely to vote the current nominee for chairman of the Commodity Futures Trading Commission, Timothy Massad, into the position sometime next month.

Former CFTC chairman Gary Gensler stepped down earlier this month; Timothy Massad has been nominated to take over for the current interim Commissioner, Mark Wetjen.

While this clears up a bit of the uncertainty around the CFTC, there are still many concerns regarding the state of the CFTC with Gensler gone.

Gensler had a reputation for being extremely hard on banks in terms of regulation, possibly to a flaw, as his rulemaking became the subject of several lawsuits during his time. While democratic lawmakers are hoping to see Timothy Massad keep a close watch on banks, republican lawmakers are hoping to see a softer side of the CFTC.

Tomothy Massad himself has noted that he will have to be diligent in making sure the CFTC isn’t taken advantage of during this transition period. The Senate will also be voting in two other nominees as commissioners; the CFTC is currently operating with only 3 of the 5 commissioners that are supposed to run it.

Interestingly, with Bart Chilton leaving the CFTC soon, this will mark the first time the CFTC, originally created to monitor commodity trading and hedging within the agricultural industry, will be without a chairman or commissioner with a background in agriculture.

Wetjen to be Temporary CFTC Chairman

As the year comes to an end, so will the term for current Commodity Futures Trading Commission chairman Gary Gensler, according to Bloomberg, commissioner Mark P. Wetjen will be temporarily taking his place.

Though Obama has nominated Timothy Massad to take the position, the Senate is yet to hold a hearing to vote on the matter. In the meantime, the commissioners will vote fellow commissioner Wetjen into the position on an interim basis, as they wait on the Senate.

Wetjen, a democrat, was a former advisor to Senate Majority Leader Hary Reid.

Wetjen may find himself sitting as chairman for a while, as the Senate seems to be dragging their feet a bit when it comes to voting in new members to the CFTC; they have yet to vote on the replacement for Jill E. Sommers, who stepped down from her position back in July.  With Sommmers gone, Gensler leaving, and commissioner Bart Chilton having one foot out the door, the CFTC may find itself being run by merely two of the five commissioners it’s supposed to have.

Chilton, who was a favorite to take over as chairman before announcing his own departure recently, will actually stick around longer than he had previously stated in order to help the Commission as it adjusts to these new changes.

White House Announces Nominee for CFTC Chairman

According to the Financial Times, the White House plans to nominate Timothy Massad for chairman of the Commodity Futures Trading Commission (CFTC).  Massad, a US treasury official, will be taking the place of current CFTC chairman Gary Gensler, who will be stepping down towards the end of the year.

How Massad plans to run the CFTC is still very much unknown, but the replacement of Gensler will most likely come as a relief to many banks and trading firms. CFTC chairman Gensler has acquired a reputation for being an extremely tough regulator.

Gensler was made CFTC chairman after the Commission was given a huge boost in responsibility in order to help prevent another financial crisis similar to 2008. President Obama will personally thank Gensler for bringing authority to the CFTC, and for his diligent work in implementing many of the regulations required by the Dodd-Frank Act.

Massad became a US treasury official in 2009 and was confirmed by the Senate to become assistant secretary at the Office of Financial Stability, which should make becoming CFTC chairman a fairly smooth transition. Massad may be best known for running the troubled asset relief programme, or “Tarp.” Since its induction, the$700 billion dollar program has seen banks repay nearly every dollar lent to them during the financial crisis, and has even made close to $30 billion in profit for US taxpayers.

Should Massad be appointed CFTC chairman, he will certainly have his work cut out for him, as the Commission is currently notoriously underfunded. Obama will be speaking with congress today about underfunded agencies in an attempt to raise the CFTC’s budget.