English /// 06/25/08
WASHINGTON -- Sen. Barack Obama on Sunday said
as president he would strengthen government oversight of energy traders he
blames in large part for the skyrocketing price of oil.
The
Democratic candidate's campaign singled out the so-called "Enron
loophole" for allowing speculators to run up the cost of fuel by operating
outside federal regulation. Oil closed near $135 a barrel on Friday - almost
double the price a year ago.
"My
plan fully closes the Enron loophole and restores commonsense regulation as
part of my broader plan to ease the burden for struggling families today while
investing in a better future," Obama said in a campaign statement.
Obama's
campaign blamed the loophole on former Sen. Phil Gramm, a Texas Republican who
serves as Republican candidate Sen. John McCain's co-chairman and economic
adviser. The Obama campaign accused Gramm of inserting a provision into a bill
in late 2000 "at the behest of Enron lobbyists" that exempted some
energy traders from government oversight.
Houston-based
Enron collapsed in scandal in 2001 when it was discovered the company had
vastly overstated its income.
McCain
spokesman Tucker Bonds said McCain has supported efforts to close the loophole
and noted the bill in question was signed into law by former President Clinton.
"The
fact that Barack Obama is attacking John McCain, despite McCain's leadership on
the issue, shows that Barack Obama is driven by the partisan attacks that
Americans are tired of," Bounds said.
McCain's
campaign supplied a copy of a letter Gramm wrote to Sen. Byron Dorgan, D-N.D.,
on June 13 in which the former senator denied charges that the adoption of the
bill was a "secret maneuver." Gramm said he had "nothing to do
with the writing of the provision" on regulation of energy trading.
Obama's
plan was outlined Sunday by New Jersey Gov. Jon Corzine, former chairman and
CEO of Wall Street investment firm Goldman Sachs, during a conference call with
reporters. Corzine said the volatility in the price of oil "is absolutely
indicative of speculation in the markets."
Congress
already has acted to close the loophole, including a provision in the huge farm
bill that passed earlier this year. But Obama's campaign said the candidate
would go further by requiring that US energy futures be traded on regulated
exchanges.
Obama
also would ask the Commodity Futures Trading Commission to consider whether
traders should be subject to higher margin requirements. He also would work
with other countries to regulate energy markets and press the Federal Trade
Commission and the Department of Justice to investigate possible market
manipulation.
The
campaign said Obama's proposal is part of his broader energy strategy that
calls for reducing oil consumption by 35 percent by 2030.
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