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Bugs

Some fairly recent activity by the US Congress in regard to passing legislation to try and reign in speculators in the global energy market. Recent bills have passed thru both The House and Senate to close a few loopholes and with large enough majorities to override any potential veto.

The "Enron Loophole" is legislation pushed thru back in '00 (singed into law by Mr. Clinton, with the particular section proposed by Phil Gramm - quite the team?) which exempts energy speculators who make their trades electronically from US regulations. Some say this could currently be affecting the price of oil by as much as $20-$30 per barrel. The recent activity to close this particular loophole was included in an amendment to a farm bill of all things.

The "London Loophole" relates to the ability of speculators in the US to conduct business in London out of reach of the eyes and ears of US regulators. Thus enabling them to "double up at the pump" on speculation limits, buy topping up on London and then later in the day topping up again in the US.

Sadly it appears that McCain has voiced opposition to the farm bill, but depending on the source his opposition is blamed either on what McCain views as over-the-top farm subsidies or on Phil Gramm pissing in McCain's ear to protect the "Enron Loophole"

NY Times Blog section:
Sewing the Energy Loopholes Shut - Mergers, Acquisitions, Venture Capital, Hedge Funds -- DealBook - New York Times

International Herald Tribune:
U.S. lawmakers scramble to close energy 'loopholes' - International Herald Tribune

Seeking Alpha web site:
The Enron Loophole - Seeking Alpha

Market Watch:
CFTC moves to close 'London loophole' as Congress pressure builds - MarketWatch

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