WASHINGTON (AP) — Ignoring a presidential veto threat, the House on Thursday approved measures aimed at curbing speculation in oil and other commodity markets. It said federal regulators did not have the tools or manpower to track trading abuses.
The bill, passed by a 283-to-133 vote and sent to the Senate, is aimed at certain hedge fund and large institutional investors as well as electronic trading through overseas entities that avoid United States government scrutiny. It would give the Commodity Futures Trading Commission authority for more staff and for limiting the stake traders hold in certain markets. It also would require new reporting and other limits on traders.
The bill now goes to the Senate, which is grappling with broader energy legislation focused on offshore oil drilling, and it is not certain whether the speculation issue will be wrapped into that effort, or even if an energy package will be passed before Congress leaves town, perhaps as early as the end of next week.
The White House said President Bush was likely to veto the bill. There “is no verifiable evidence to conclude that oil speculators were behind the rise in oil prices” or were “behind its recent decline,” the White House said.


Of course that would affect his oil buddies and profits.