Today the House Agriculture Committee, on which Congressman Bob Goodlatte serves, and the Financial Services Committee held a joint hearing to review the Obama Administration’s proposal to regulate over-the-counter (OTC) derivatives, which are contracts that derive their value from an underlying commodity and are not traded on a registered exchange.

In the hearing Treasury Secretary Tim Geithner testified regarding the Administration’s proposal to regulate OTC derivatives.  However, the Secretary left many questions unanswered on what standardized derivatives would be regulated.  With these questions unanswered it will be difficult for lawmakers to draft legislation.

“I am extremely concerned that this hearing was premature,” said Congressman Goodlatte.  “Without having an actual legislative proposal to review, Secretary Geithner was unable to answer any questions. However, I do appreciate the Secretary’s willingness to come back to testify before both Committees once legislation has been introduced, an idea that both Chairman Peterson and Chairman Frank seemed receptive too.”

Just two weeks ago the House of Representatives narrowly passed a massive new energy tax known as Cap and Trade.  Included in this legislation was a place holder that was announced just hours before the vote which included an agreement between Chairmen Peterson and Frank to continue to negotiate CFTC reform.

“After the experience we had with the Cap and Trade bill where the legislative process was completely ignored, it's good to see that Congressman Goodlatte obtained the commitment from two committee chairmen and Secretary Geithner that we will continue to have a full and complete process on financial regulatory reform,” said Agriculture Committee Ranking Member Frank Lucas (R-OK).