Obama to Close the Enron Loophole

Monday, June 23, 2008

Barack Obama on Sunday said he would tighten the regulation of oil speculators in an effort to ease record high gasoline prices and address one of Americans’ top concerns.

Closing the so-called Enron loophole, a legal provision requested by that company in 2000 that exempts crucial energy commodities from government oversight, would prevent traders of American crude oil from routing transactions through offshore markets to evade American limits and working with other countries to better regulate oil-futures markets.

Obama also called on the Federal Trade Commission and the Department of Justice to investigate market manipulation and oil futures.

“My plan fully closes the Enron loophole and restores common-sense regulation,” the senator said in a campaign statement.

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16 Responses to Obama to Close the Enron Loophole

  1. TOM339 says:

    Closing the Enron Loophole, the loophole Dick Cheney helped Enron push through, would effectively create an overnight drop in oil prices of between 25 and 50 percent.

    According to testimony before a U.S. Senate Committee two weeks ago by Michael Greenberger, the former director of Trading & Markets for the Commodities Future Trading Commission (CFTC), the government board that oversees commodities markets.

    “Yes,” Greenberger testified, “overnight [closing the Enron Loophole] will bring down the price of crude oil to get at least a 25 percent drop in the cost of oil and a corresponding drop in the cost of gasoline. Some people estimate 50 percent.”

    Obama is correct and Obama just lost the support of Big Oil so get ready to dig deep and donate even more to his campaign.

  2. DCVET says:

    Removing oil and other energy from government regulation was always a top priority for this administration. I remember what happened to the electricity grid in San Diego back in 2000 because my son lives out there and said he saw his home bill increase five-fold in one month. ENRON was one of the suppliers for electricity to the region.

  3. Larry says:

    The racist neocon lovers on Joe Scarborough’s show are dissing this like they do everything else that will stifle Corporate America.

  4. Brigadoon says:

    I would like to the Feds nationalize the oil industry a la Chavez and Venezuela. Just send in the military and remove the CEOs of EXXON, Chevron, and Sunoco and announce all American refineries are under the control of the government.

  5. Kurt says:

    Barack is absolutely right on this one. But, like he says about Iraq, we have to be as careful getting out of the speculation bubble as we were careless getting into it. If we pull the plug precipitously, the drastic change could do a lot of harm to the overall market.

  6. RainBro says:

    So right it hurts… Those oil pigs need to be rounded up and put back in the sty. It needs to be done now, not a year from now…

  7. feminazi says:

    I can’t wait to hear who the Bush administration tries to blame next for $4.29 a gallon gas. So far, they blamed Hurricane Katrina, American drivers for driving too much, Chinese drivers, American drivers, political unrest in Nigeria, and did I mention American drivers? Wasn’t it Bush who said after 9/11 that all we needed to do was get out there and drive and spend? Yeah, well screw you, Mr. Bush.

  8. Adirondacky says:

    The damage to the U.S. economy from the Cheney energy policy will be felt for decades. This massive transfer of wealth from the American consumer to the accounts of Big Oil, coupled with enormous deficit spending needed to keep Bush’s wars afloat in Iraq and Afghanistan, has robbed the Greenback of its luster and made it a second tier currency for global investors. In fact, so poorly valued is the U.S. dollar today that in many parts of the world, you can no longer pay with American currency. The world wants euros and pounds.

  9. Oh, oversight only leads to the inevitable regulation, then the consumer is the one holding the bag. If only everyone could be as far seeing as Overlord Cheney.

  10. Woodcliffe says:

    Obama will arrive in the White House with a full-plate of duties and burdens.

    Let’s show him some support and not get sidetracked by these Hillbots looking to derail him over his FISA comments. He’s going to need all the help and support we can offer up.

  11. Harry says:

    Too bad Obama can’t close the loophole around Cheney’s fat neck and squeeze off his air supply.

  12. Aunt Peg says:

    Whatever works to lower the prices of fuel.

    In some parts of the country regular is selling for $4.99 a gallon. $100 dollars to fill up a 20 gallon tank. This is ridiculous and God only knows that George Bush can’t be bothered with the problem.

  13. Jim says:

    Oh yes! No government oversight for oil companies, that’s a very good thing!

  14. Kurt says:

    Look, geniuses. I SUPPORT Barack for targeting the Enron Loophole.
    I’M ON HIS SIDE!!!
    All I said is that he needs to be careful, because a drastic overnight change in the market would negatively affect various other aspects of our already screwed-up economy.

  15. William says:

    CloseLoophole.org is a viral-marketing campaign to let our Senators know that we want them to close the Enron Loophole completely and immediately. Click on your state, and you will get the phone number and e-mail address for your Senators. You can email your Senators and let them know how you feel, and then email your friends to do the same. Go to http://closeloophole.org

  16. Circle See says:

    Lack over government oversight is what allows for energy speculation to drive prices up and slow the economy.

    Relax Kurt. The economy will be just fine once gasoline falls back to under $3.00 a gallon.

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