From left: Sharon Bowen, Timothy Massad and Christopher Giancarlo

The Senate today confirmed a new chairman of the Commodity Futures Trading Commission and two new commissioners, bringing the five-person to a full complement.

The Senate first confirmed Sharon Bowen by a vote of 48 to 46.

After approving Sharon Bowen, the Senate proceeded to votes on Timothy Massad, a Treasury official and Democrat, to become a commissioner and chairman of the commission, and Christopher Giancarlo, a Republican, to fill open positions.

The two votes for Massad and the vote for Giancarlo were by voice.

Walter Lukken
Futures Industry Association President and CEO Walt Lukken, a former commissioner, congratulated all three nominees immediately after their confirmation.

“I’m pleased that we now have a full slate of commissioners to take on the important work ahead for the CFTC,” Lukken said in a news release.

“The derivatives industry plays a vital role in hedging risk and reducing price volatility, so it’s important that CFTC rule-making ensures a healthy, well-regulated and dynamic futures market,” he said.

“The Dodd-Frank Act greatly expanded the scope of the CFTC’s authority, and there are still many important issues that need to be addressed in the implementation of that law. So it is all the more important that the CFTC have a full complement of Commissioners at this critical moment in its history.”

Only Bowen's nomination was controversial. During her service on the Securities Investor Protection Corporation, SIPC denied a request from victims of the $7 billion Ponzi scheme perpetrated by Allen Stanford, who is serving a 110-year prison sentence.

Sen. Debbie Stabenow, D-Mich.
Senate Agriculture Committee Chairwoman Debbie Stabenow, D-Mich., defended Bowen’s nomination before the vote, noting that during her tenure SIPC has returned $24.5 billion to more than 9,000 investors. and that she would be first African-American woman to serve on the CFTC and the only woman commissioner among the current group.

Stabenow issued a statement after the vote:

“I’m proud that my colleagues in the Senate gave their support to confirm Sharon Bowen as commissioner for the CFTC,” Stabenow saId.

“Ms. Bowen is an accomplished public servant who recognizes the urgency and importance of protecting the markets and ensuring they are transparent and working as intended. The commission will benefit from Ms. Bowen’s experience and expertise, as will the farmers, ranchers and small businesses across the country who rely on the markets to hedge risk and continue growing their businesses.”

Mark Wetjen, the commissioner who has been serving as acting chairman, also issued an immediate statement congratulating Bowen.
Sen. Bernie Sanders, I-Vt.
Sen. Bernie Sanders, an Independent from Vermont, issued a statement to note that he had not voted for Bowen.

“We need regulators who will have the courage to stop the largest Wall Street banks in this country from driving up oil prices in the energy futures market,” Sanders said.

“After reviewing her record and those of two other nominees, I am afraid that none of them will make sure that the price of gasoline and heating oil is based on supply and demand and not Wall Street greed.”

In remarks on the Senate floor after Massad and Giancarlo were confirmed, Stabenow praised the other commissioners.

Massad “has a sterling record of public service,” Stabenow said, noting that he had been confirmed unanimously three years ago as Treasury assistant secretary for financial stability and in that position has overseen the wind-down of the assest relief program.

“It’s a tribute to Mr. Massad’s leadership that the banks that benefited from TARP have repaid nearly every dollar,” she said.

During his confirmation hearing testimony, Stabenow said, Massad had signaled that he would be a strong enforcer and “will be an advocate for strong international regulatory standards in a global derivatives market.”

Stabenow also noted that Giancarlo has worked in companies that focused on swaps markets regulated by the CFTC, particularly the G.F.I. Group.

During his testimony, Stabenow said, Giancarlo emphasized the value of transparency in the swaps market and said he agrees “with most” of the provisions in the Dodd-Frank bill.

Stabenow also noted that the commission needs bigger appropriations to do its job properly and that the Senate Agriculture Committee is working on legislation to reauthorize the commission.