Rep. Collin C. Peterson Holds a Hearing On Over-the-Counter Derivatives Market, Panel 1

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Rep. Collin C. Peterson Holds a Hearing On Over-the-Counter Derivatives Market, Panel 1

HOUSE COMMITTEE ON AGRICULTURE HOLDS A HEARING ON THE OVER-THE-COUNTER DERIVATIVES MARKET, PANEL 1

SEPTEMBER 17, 2009

SPEAKERS: REP. COLLIN C. PETERSON, D-MINN. CHAIRMAN REP. TIM HOLDEN, D-PA. REP. HENRY CUELLAR, D-TEXAS REP. MIKE MCINTYRE, D-N.C. REP. LEONARD L. BOSWELL, D-IOWA REP. JOE BACA, D-CALIF. REP. DENNIS CARDOZA, D-CALIF. REP. DAVID SCOTT, D-GA. REP. STEPHANIE HERSETH SANDLIN, D-S.D. REP. JIM MARSHALL, D-GA. REP. JIM COSTA, D-CALIF. REP. BRAD ELLSWORTH, D-IND. REP. TIM WALZ, D-MINN. REP. STEVE KAGEN, D-WIS. REP. KURT SCHRADER, D-ORE. REP. DEBBIE HALVORSON, D-ILL. REP. KATHY DAHLKEMPER, D-PA. REP. ERIC MASSA, D-N.Y. REP. BOBBY BRIGHT, D-ALA. REP. BETSY MARKEY, D-COLO. REP. FRANK M. KRATOVIL JR., D-MD. REP. MARK SCHAUER, D-MICH. REP. LARRY KISSELL, D-N.C. REP. EARL POMEROY, D-N.D. REP. JOHN BOCCIERI, D-OHIO REP. TRAVIS CHILDERS, D-MISS. REP. WALT MINNICK, D-IDAHO REP. SCOTT MURPHY, D-N.Y.

REP. FRANK D. LUCAS, R-OKLA. RANKING MEMBER REP. ROBERT W. GOODLATTE, R-VA. REP. JERRY MORAN, R-KAN. REP. TIMOTHY V. JOHNSON, R-ILL. REP. SAM GRAVES, R-MO. REP. MIKE D. ROGERS, R-ALA. REP. STEVE KING, R-IOWA REP. RANDY NEUGEBAUER, R-TEXAS REP. K. MICHAEL CONAWAY, R-TEXAS REP. JEAN SCHMIDT, R-OHIO REP. JEFF FORTENBERRY, R-NEB. REP. ROBERT LATTA, R-OHIO REP. BLAINE LUETKEMEYER, R-MO. REP. GLENN THOMPSON, R-PA. REP. BILL CASSIDY, R-LA. REP. CYNTHIA M. LUMMIS, R-WYO. REP. PHIL ROE, R-TENN. REP. ADRIAN SMITH, R-NEB.

WITNESSES: JON HIXSON, DIRECTOR, FEDERAL GOVERNMENT RELATIONS, CARGILL, INC.

GLENN ENGLISH, PRESIDENT, NATIONAL RURAL ELECTRIC COOPERATIVES ASSOCIATION

DAVE SCHRYVER, EXECUTIVE VICE PRESIDENT, AMERICAN PUBLIC GAS ASSOCIATION RICHARD B. HIRST, SENIOR VICE PRESIDENT AND GENERAL COUNSEL, DELTA AIR LINES, TESTIFYING ON BEHALF OF THE AIR TRANSPORT ASSOCIATION

[*] PETERSON: The committee will come to order.

This hearing of the Committee on Agriculture to review proposed legislation by the U.S. Department of Treasury regarding the regulation of over-the-counter derivative markets will come to order.

I want to welcome everyone to today's hearing to review the legislative language put forth by the U.S. Department of Treasury last month regarding the regulation of the over-the-counter derivatives. We are beginning an important period in our attempts to bring much- needed transparency and more effective oversight to our financial markets, particularly for unregulated swaps of derivatives.

Before the August district work period, House Financial Services Committee Chairman Frank and I released a concept paper outlining our shared principles on what over-the-counter derivative legislation should entail. We put out the concept paper before August so that members could have plenty of time to review it, critique it, develop ideas, suggestions, thoughts, and comments in preparation of dealing with these issues this fall.

With that said, I hope that the members of this committee would come armed with good questions today for our industry stakeholders.

Earlier this year, the White House presented broad reform proposals touching many sectors of the financial system. Included in those proposals were provisions to regulate the market for over-the- counter derivatives.

Our committee examined these principles in July, and when Secretary Geithner appeared before a joint hearing with the House Financial Services Committee, we heard their general views at that time. Secretary Geithner's testimony that day was informative, and I was encouraged by his willingness to work with our two committees in a bipartisan manner as we move forward.

Following Secretary Geithner's appearance, Treasury has filled in some of the blanks on their regulatory reform principles with legislative language, and that is the subject of today's hearing. I am pleased to note that several of Treasury's proposals are similar in concept to legislation that our committee has already passed this year, including mandatory clearing of all standardized over-the- counter products and setting capital and margin requirements for dealers.

Treasury's lan...

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