Bad news for the banks. Good news for the public.

 COMMODITY FUTURES TRADING COMMISSION, Washington DC.

Commissioner Jill Sommers Announces her Resignation

01/24/2013 03:02 PM EST

Appointed by President Bush in 2007, Sommers previous job was chief lobbyist for the International Swaps and Derivatives Association, and is the poster child for “First, Do Nothing” in regulatory reform in the financial industry. As Commissioner, she opposed implementation of any regulation that might impact the ability of the four large swap dealers who account for 94% of swap contracts: JP Morgan/Chase, Bank of America, Citigroup, Goldman Sachs.

Watch the news. Best guess is she will land on her feet–in a plush office with a major bank.

The first thing we do, let’s kill all the speculators.

Futures markets serve as a hedging devise for commodity producers and processors. In a perfect world of balanced supply and demand, commodity processors would contract directly with producers for future inventory needs at negotiated prices. In the real world, there are nearly always more producers wanting to sell than processors willing to buy, or visa-versa. This gap is bridged by speculators who step in to assume market risk—as temporary buyers or sellers—in exchange for a profit opportunity. If they did not exist, speculators would need to be invented in order for futures markets to function. Continue reading