The Wall Street Journal reported Wednesday on a trend of Commodity Futures Trading Commission (CFTC) employees moving to the private sector to firms who will be affected by Dodd-Frank rules these employees have just recently helped to write.
The story noted, “At least nine CFTC employees have decamped since June for firms in finance, law and accounting that are figuring out how to comply with the Dodd-Frank overhaul. Six of the staffers were directly involved in rule making and three were in enforcement.”
The story points out that there long has been a revolving door between Washington and Wall Street but that it usually involves the Securities and Exchange Commission, Federal Reserve or Department of Treasury rather than the CFTC. The CFTC’s role in crafting swaps regulations as part of Dodd-Frank has created a demand for CFTC staffers.
The story notes, “Critics of the revolving door between Washington and Wall Street say they worry ex-staffers could use their personal connections to pressure the agency into crafting rules favorable to their new employers.”