This hearing was intended to draw attention to another criticism often used by opponents of the Dodd-Frank Act. These critics argue the regulation of the derivatives industry will result in American firms losing business to foreign competitors and contribute to job loss.
The two Commodity Futures Trading Commission members on the first panel differed in their views. Republican Jill Sommers said she was in daily contact with her overseas regulatory counterparts and despite the dialog, she believes the United States will set too high of bar and risk economic harm the economy. Democratic Commissioner Bart Chilton disagreed. Chilton said the country could actually gain trading activity by establishing rules in place early before other jurisdictions.
A second panel of pro-industry witnesses agreed with Chairman Mike Conaway views that U.S. financial firms risk job losses. They also warned that foreign regulators would retaliate should U.S. regulation prescribe stringent regulations on foreign firms doing business in the United States.
