This hearing gave Dodd-Frank Act opponents another opportunity to pursue the belief that the implementation derivatives regulations would prove too burdensome. Chairman Frank Lucus used his opening statement to say the proposed regulations would go too far, and he would seek congressional action if he did not think the Commodity Futures Trading Commission rules would be balanced.
CFTC Chairman Gary Gensler was the only witness on the opening panel. He stressed the progress his agency has made. Gensler said his agency was proceeding at a reasonable pace and, while considerable work remained, he was confident that final regulations would achieve the balance that Lucas seeks.
The second panel consisted of representatives of financial institutions, public utility companies, and official from the Ford Motor Co. They described how important it was for their businesses to be able to hedge certain financial aspects of their operations through derivatives trading.