Sommers wins wide praise after CFTC resignation
January 25, 2013 | 12:05 AM
Commodity Futures Trading Commission Commissioner Jill Sommers, who has been charge of the MF Global investigation, won wide praise Thursday, particularly from Republican members of Congress, after she unexpectedly announced she would resign in the coming months.
Sommers, one of two Republicans on the commission, is part way through a five-year term that ends in 2014. She has said she wants to spend more time with her children, Bart Chilton, a fellow commissioner who is likely to take over the MF Global duties, told The Hagstrom Report. (See following story.)
The departure of Sommers will leave Democrats on the five-member commission with an advantage until President Barack Obama nominates her replacement.
CFTC Chairman Gary Gensler, Chilton and Mark Wetjen are Democrats, while Scott O’Malia is a Republican.
Gensler’s first term as chairman ended in April, but the rules allow him to remain as chairman until the end of 2013. Gensler has said he would be interested in serving another term.
The commission is in the process of implementing the Dodd-Frank financial services reform act. After Gensler recused himself from handling the failure of MF Global Holdings, Inc. because he had worked years earlier with CEO Jon Corzine, the other commissioners put Sommers in charge.
“I feel like we’re kind of at the end of the major rulemaking for Dodd-Frank,” Sommers, 44, told Bloomberg. “My intention is not to leave until after this last group of rules. It’s not effective immediately. I suspect I’ll leave sometime after the first quarter.”
“I would like to acknowledge the hard work and dedication of my fellow commissioners and the many talented staff with whom I have had the pleasure of working for the past five years,” she said in a statement. “While many challenges remain in finalizing the implementation of the Dodd-Frank Act, I have every confidence that the American public will be well-served by their continuing efforts.”
Sommers is married to Mike Sommers, a top aide to House Speaker John Boehner, R-Ohio. They have three children.
Sommers said she would not leave until after the first quarter, but her announcement was unexpected. She told Bloomberg, however, that she has been considering resigning for some time.
“I’ve come to this decision after thinking about it and internally struggling about it for months,” Sommers told Bloomberg in a telephone interview. “This has not been an abrupt decision.”
Sommers joined the commission in 2007. She was renominated by President Barack Obama in 2009 and confirmed by the Senate for a five-year term.
Gensler said Sommers “has brought significant experience and a clear and consistent voice to fulfilling the mission of the CFTC.”
“Along with our fellow commissioners, Jill has worked to bring common-sense swaps market reforms to life and to safeguard the integrity of the futures market. Jill has been essential to these historic efforts,” Gensler said.
Republicans have often praised Sommers at congressional hearings for her views on both the implementation of Dodd-Frank and her handling of MF Global, and they stated their appreciation again Thursday as news of her resignation spread.
Sen. Pat Roberts, R-Kan., who served as ranking member on the Senate Agriculture Committee for most of her tenure, said Sommers has served with distinction.
“Her work on the MF Global investigation and the many challenges facing the CFTC, especially in the last two years, has been excellent,” Roberts said. “She has been consistent voice of reason at the CFTC during implementation of the Dodd-Frank Act and I will miss her advice and counsel."
Roberts also said he has been “so proud to have a Kansan on the commission, one who understands agriculture and the futures industry, after a distinguished career that started with Sen. Bob Dole and produced real leadership on the CFTC.”
House Agriculture Committee Chairman Frank Lucas, R-Okla., said Sommers has been a “voice of reason” during a pivotal time in CFTC’s history, and that he was grateful for her service.
“She has advocated for a balanced approach to regulatory reform in the U.S. that is reasonable, thoughtful, and not disruptive to global markets,” Lucas said. “I appreciate her leadership in investigating the failure of MF Global and hope the Commission will continue her efforts when she leaves.”
“In short, Jill is a friend of agriculture,” Lucas said. “Although I wish her well in all of her future endeavors, I can say with certainty she will be missed.”
Rep. Michael Conaway, R-Texas, echoed Lucas’ comments, saying Sommers “has served honorably as a strong voice of reason at the CFTC.”
“Commissioner Sommers has never forgotten that the CFTC’s rules reach far beyond Wall Street, impacting the livelihoods of America’s farmers, ranchers and small businesses every day,” said Conaway, who serves as chairman of the House Agriculture General Farm Commodities and Risk Management Subcommittee.
Senate Agriculture Committee Chairman Debbie Stabenow, D-Mich., also offered praise.
“I’d like to thank Commissioner Sommers for her outstanding service during this critical time as we continue implementing the Wall Street Reform and Consumer Protection Act and work to harmonize rules internationally,” Stabenow said.
“Her hard work and contributions are greatly appreciated and will be missed.”
Former Republican CFTC commissioner Walt Lukken, now president and CEO of the Futures Industry Association, also thanked Sommers for her service.
“Jill has always been a thoughtful voice willing to carefully examine the details of rulemakings and consider all sides of complex policy issues,” Lukken said. “I also want to thank her for her leadership on international issues and her support for the CFTC’s Global Markets Advisory Committee, which has been a vital source of information and expertise on policy issues related to cross-border trading.”
The Chicago-based CME Group said, “Commissioner Sommers has been a tenacious and effective advocate for preserving the competitiveness of U.S. markets, both in her thoughtful approach to regulatory reform and in her work as chairman of the Global Markets Advisory Committee. Her deep understanding of our industry and careful, balanced approach to regulation were assets to the commission and all participants in the global derivatives markets.”
