WASHINGTON — President Barack Obama’s choice for a seat on the Commodity Futures Trading Commission sparred with Republicans on the Senate Agriculture Committee Thursday on the agency’s implementation of the Dodd-Frank bill.
In his first confirmation hearing before the Senate Agriculture Committee, Democratic staffer Mark Wetjen told the committee that his experience in the private sector positioned him well for the job.
“As an attorney working in financial services, the main benefit that has for me was I understand how legislation and how rules impact the private sector and impact businesses,” Wetjen said.
While Senate Agriculture chairwoman Debbie Stabenow, D-Mich., signaled her strong support for Wetjen, Sen. Pat Roberts, a Kansas Republican, challenged him on how he would implement financial regulatory policies.
“I didn’t vote for Dodd-Frank for several reasons, but one central concern was that the rules outlined in the legislation would have the effect of driving business overseas,” Roberts said, where other countries like Japan and the European Union have not followed the U.S. example of tighter financial sector regulation.
“I sincerely hope that it was not the intent of Dodd-Frank and those who wrote the law to create a mass exodus of capital from the U.S.”
Wetjen responded several times that so long as the CFTC held closely to its duty to protect the U.S. financial system from systemic risk, it would not be a disadvantage for American businesses.
If Wetjen is confirmed by the full Senate, Democrats would hold on to the majority in the CFTC. There are three Democrats, including Chairman Gary Gensler, and two Republicans currently holding seats.
The balance of power has been closely watched in the CFTC given the agency’s new responsibilities this year in implementing Dodd-Frank regulatory reforms and the increased volatility in commodity markets — what Stabenow called “a crucial moment for our economy.”
Commissioner Michael Dunn’s term ended June 19, but he had agreed to stay on board until his replacement was confirmed. Dunn is permitted by law to stay on the commission until 2012.
Staff said the Senate Agriculture Committee may vote on Wetjen’s confirmation within a week.