[Congressional Record (Bound Edition), Volume 154 (2008), Part 2] [Senate] [Pages 1561-1562] [From the U.S. Government Publishing Office, www.gpo.gov]DOJ STAFF MEMO ON THE FUTURES MARKETS Mr. DURBIN. Mr. President, I thank the majority leader for requesting 10 minutes for me in morning business. The State of Illinois is home to some of the most dynamic and innovative financial services firms in the world. For the futures markets, Chicago is a global leader. I pay particularly close attention to the vitality of these markets. It is an important part not only of the economy of my home State but of the economy of our Nation. The work in the futures markets has a direct impact on everything from pork bellies to currencies to the price of oil. I am deeply disturbed with what has taken place this week within the Department of Justice relative to those futures markets. As we have been told, the staff at the Justice Department recently wrote a memo to the Department of Treasury questioning the structure of clearing and settlement services in the U.S. futures industry. The staff has referred to concerns about restraint on competition and other issues. What is troubling about this disclosure is that the Department of Justice staffers apparently are claiming that they were simply commenting on a Treasury proposal regarding the overall competitiveness of America's financial markets. But the comment period on the Treasury proposal ended 2 months ago, 2 months before the Department of Justice released this memo, and it is been more than 6 months since that same Department of Justice approved the merger of the Chicago Mercantile Exchange and the Chicago Board of Trade. Well, people say: So what? Bureaucrats release memos. Who pays any attention to those? Well, let me tell you what happened yesterday. When this memo became public, the price of the Chicago Mercantile Exchange stock declined by over $100 in 1 day. That reduced shareholders' market capitalization by almost $6 billion. A memo from the Department of Justice to the Department of Treasury leaked to the Dow Jones Press Service, which became public, cost the Chicago Mercantile Exchange, in 1 day, market capitalization of almost $6 billion. There was no justification for this memo. The comment period was closed, the Department of Justice had acted on the merger, and there was no reason to release it. I have joined with my colleague, Congressman Rahm Emanuel, in sending a letter to Attorney General Mukasey and Secretary Paulson calling on them to not only look at the substance of this memo but also the circumstances. By what right was this staff memo issued in the first place or released to the press? I want to quote one of the Commissioners of the Commodity Futures Trading Commission. That is the Government agency responsible for regulating these markets. This is what the Commissioner said: The Department of Justice staffer letter has unfortunately roiled the markets, and this is precisely the kind of behavior that Government regulators are supposed to take ordinary care and attention to avoid. He is right. I think that letter was entirely inappropriate, and the fact that it was the leaked to the press--and I do not know whether it was leaked at Justice or at Treasury--is something that should be investigated. I do not want to read too much into this, but someone who understood the impact of the market and decided to short the stock could have made a lot of money yesterday. I am not saying that occurred, but that is how serious it is, that the stock would go down $100 in 1 day because of this action. Today, the stock has started to recover. I am glad. But still we have to answer, at the Federal level, why this ever occurred. These markets are ready to be regulated and examined, and they should be. We want transparency and public trust at every single level. And we know that competition in this market goes far beyond the United States. These are now international and global markets, and the Chicago Mercantile Exchange is the one of the leaders in these markets. They should be closely regulated, closely watched, and should be subject to all of the laws and regulations concerning transparency. But when some staffer at the Department of Justice can take a potshot at this global market and cost them almost $6 billion in market capitalization in 1 day, I think we have a right to demand accountability. I am joining with my colleagues in the Senate and in the House in calling on this administration to look into this matter as quickly as possible. I hope to find out why this comment letter was filed 2 months after the Treasury Department deadline if the memo [[Page 1562]] was meant to be related to that effort. I hope to find out if the Department of Justice considered its influence on the markets prior to drafting this letter or leaking this letter, whatever was done. I hope there is not more to this story than the Justice Department staffers are claiming, but I wonder. That is the reason I have written to these two leaders in the administration asking for a timely response. I yield the floor and suggest the absence of a quorum. The PRESIDING OFFICER. The clerk will call the roll. The bill clerk proceeded to call the roll. Mr. BOND. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. The PRESIDING OFFICER. Without objection, it is so ordered. Mr. BOND. Mr. President, I understand that the bill is to be called back up, the FISA bill; is that correct? The PRESIDING OFFICER. That would be the regular order. Mr. BOND. If the proponent of the amendment is ready, I would suggest that we begin the final lap on these amendments. ____________________