The Commodity Futures Trading Commission will receive far less money than it requested for the upcoming fiscal year, hurting its ability to implement the new powers it received under the Dodd-Frank Act.
Congressional lawmakers have set the commission’s budget at $205 million for the year, which is $100 million less than the amount requested by President Obama, according to WSJ.com.
CFTC officials warned that without an adequate budget, they would not be able to implement rules that they were required to write under the Dodd-Frank Act. The budget cut may also interfere with the commission’s ability to launch a full investigation into the fallout of MF Global Holdings, which filed for bankruptcy at the end of Oct.
CFTC Chairman Gary Gensler added that the agency will have trouble implementing new rules for over-the-counter derivatives without more funding., WSJ.com reports.
Senate Democrats sought a $240 million budget for the agency, yet the Republican majority of the House proposed a $170 million budget. The CFTC received $169 million in 2011 and the Obama administration requested $388 million for the CFTC for 2012.
The commission’s budget is a part of a larger spending bill for several federal agencies, including the Food and Drug Administration and the Justice Department, according to WSJ.com.