GOP Budget Cuts Mean Less White Collar Criminals Get Investigated

The Huffington Post  |  By 

Austerity isn’t just hurting the U.S. economy: It’s also starving Wall Street’s watchdogs.

The Commodity Futures Trading Commission has decided not to press charges against two traders in the “London Whale” case partly because it is so strapped for cash, its former chief enforcement officer, David Meister, told the Wall Street Journal. The CFTC is also slowing down investigations and laying off staff as a result of its funding crunch.

“We will do everything we can… but we have limited staff and limited resources,” Meister, who stepped down this week, told the WSJ. “Ultimately, it comes down to the math.”

House Republicans, as you may know, have made it pretty hard for the CFTC to do its job lately. They’ve repeatedly rejected requests for more CFTC funding and most recently turned down a raise for the agency to $315 million from $195 million. Of course, the agency’s budget was already squeezed by the automatic spending cuts of the sequestration.

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