* White House asked for large increase for CFTC
* Democrats say cuts will stymie regulation of OTC swaps
* GOP says U.S. agencies have money for core missions
* Bill could be cleared next week for floor vote
WASHINGTON, May 24 The U.S. futures regulator
will see a 15 percent cut in funding under a bill approved by a
House subcommittee on Tuesday despite objections it will
prevent regulation of the vast market in over-the-counter
The Republican-controlled panel approved the bill on a
voice vote. The bill, which covers fiscal 2012 funding for the
Agriculture Department and related agencies, could be cleared
next week by the full Appropriations Committee for a floor
"If ever there was a place not to cut, it is regulation of
Wall Street," said Sam Farr, the Democratic leader on the
subcommittee. Fellow Democrat Marcy Kaptur said she may try
next week to boost funding for the Commodity Futures Trading
The CFTC would get $172 million under the panel-approved
bill, a $30 million cut from this fiscal year, which ends Sept.
30. The administration says CFTC needs a hefty increase in
staff and equipment so it can regulate swaps, as required by
the 2010 financial reform law.
Farr said afterward that he was skeptical the
Republican-run House and Democrat-controlled Senate can agree
on spending bills. Each has sharply different views on where
and how much to cut spending. Farr said the result could be
another year of stopgap spending bills.
Subcommittee chairman Jack Kingston said the $125 billion
bill, a $300 million increase from this year, provides enough
money for agencies to carry out their core missions. Cuts were
made in many agencies as part of fiscal austerity.
The CFTC has proposed four dozen rules to implement the
reform law but says it will miss the initial deadline to put
them into effect.
House Republican leaders have proposed a delay until late
2012 in implementing the law. They say it will prevent errors in
hasty rule-writing. Their opponents say the financial meltdown of
2008 shows the need for prompt regulation.
(Reporting by Charles Abbott)