July 24, 2014

CULTURE OF CORRUPTION: Derivatives regulator CFTC’s ‘revolving door’ move to industry group criticized.

An outgoing commissioner of the regulatory agency that oversees derivatives contracts will become the CEO of the International Swaps and Derivatives Association, a trade group for firms that engage in derivatives transactions, according to a statement from the ISDA Wednesday.

The commissioner, Scott O’Malia, had announced his departure from the Commodity Futures Trade Commission two days earlier. O’Malia, who had previously worked as a Senate staffer for Minority Leader Mitch McConnell of Kentucky and Sen. Pete Domenici of New Mexico, was a Republican nominee to the five-member CFTC.

O’Malia’s move to a trade group involved in CFTC matters drew immediate criticism from financial reform advocates. The group Better Markets wrote in a statement that “O’Malia’s spin through the revolving door is a record setter for influence peddling.”

The Obama era has just been one big advertisement for my revolving door surtax.