Ex-Lobbyist Confirmed to CFTC

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Meet the newest addition to the Commodity Futures Trading Commission. If you’ve been reading Mother Jones recently, then you already know quite a bit about Scott O’Malia. Like the fact that he once worked as a top in-house lobbyist for an energy company, Mirant, that manipulated California’s market Enron-style. Or that, while on this company’s payroll, he lobbied against a bill to expand the CFTC’s authority to police derivatives. Or that the Senate Agriculture Committee, which reviewed his nomination, declined to ask him any specific questions about his pro-deregulation lobbying on not one but two occasions.

O’Malia and two other nominees were unanimously confirmed late Thursday. He will fill the seat vacated by Walter Lukken earlier this year, serving a five-year term that expires in April 2015. O’Malia’s tenure on the 5-member commission comes at a time when the Obama administration is pushing an ambitious financial reform overhaul, which, among other things, includes strengthening the historically toothless CFTC. During his recent confirmation hearing, O’Malia expressed [PDF] his commitment to bolstering oversight and said he would work to “ensure the CFTC uses all of its legal authorities to curb excessing speculation and prevent abusive trading practices, including fraud and manipulation.” Given his track record, there’s reason to be dubious. An energy analyst recently raised the theory that O’Malia’s nomination caused a rally in the oil market, with investors betting he’d reduce “the risk” the commission will take an aggressive stand on speculation.

It’s always possible that in the years following his stint at Mirant, O’Malia shifted his views on regulation and oversight. It’s possible that he’ll work to strengthen the rules his former company worked to undo. But if not, the Obama administration has succeeded in undermining its own agenda.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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