COMMERCE COMMITTEE DEMOCRATS
Congressman John D. Dingell, Ranking Member

WASHINGTON-- Representative John D. Dingell (D-MI), Ranking Democrat on the House Committee on Commerce, issued the following statement upon release of the November 9, 1999 Report on Over-the-Counter Derivatives Markets and the Commodity Exchange Act by the President’s Working Group on Financial Markets:

"The Working Group starts with the premise that ‘a cloud of legal uncertainty has hung over the OTC derivatives market in the United States in recent years, which, if not addressed, could discourage innovation and growth of these important markets and damage U.S. leadership in these arenas by driving transactions offshore.’ After six months of study, the Working Group has basically concluded that we should get rid of almost all regulation of these products and ‘let the good times roll.’"

"I support the recommendation for improvements to the clearing of OTC derivatives and authority for the CFTC to address growing abuses associated with foreign currency ‘bucket shops.’ But proposals for the creation of totally unregulated institutional markets and the repeal of the ban on single-stock futures are dangerous follies. The Congress should think long and hard about the practical and public-policy implications for both the derivatives and the securities markets, and the longstanding confidence in the integrity of U.S. markets."