The Budget bill currently before Congress would repeal the “push out” rule, but at the same time increase the budget of the CFTC by approximately $35 million. The push out rule, enacted as part of the Dodd-Frank Act, would require that banks “push out” swaps trading into separate entities that are not backed by FDIC. While proponents of the push out rule assert that it would ensure the federal government is not required to bailout banks as a result of risky trading, critics assert that the push out rule does little to safeguard the financial industry.
The Budget bill would also increase the CFTC’s annual budget from $215 million to $250 million. While the budget increase would provide the CFTC an additional $35 million, it is less than $280 million budget sought by the White House and the CFTC.