06-20-08
Finally. After a clerical bungle that sent the farm bill through two Congressional votes, two presidential vetoes and two Congressional override votes, it and the "Close the Enron Loophole" amendment are law. It’s a little like the elephant giving birth to a mouse–the measure will apply only mild oversight and a handful of regulation to oil and energy markets that were left completely unregulated back in 2000, when Congress did whatever Enron wanted. But modest as it is, the measure failed for failed for six years under withering corporate pressure. Congrats to Senators Dianne Feinstein and Carl Levin, the reform’s strongest backers, for finally reaching victory on Wednesday.
The faster the loophole is closed, the more oil prices are likely to fall. Unfortunately, the White House and its weak, understaffed market regulators (the Commodity Futures Trading Commission) will take their time writing actual enforcement regulations unless Congress keeps the heat on.