Reply #31: Goldman Says Curbing Speculators May Disrupt Markets (Update1) (Bloomberg)

[Hugin]

By Tina Seeley

"July 29 (Bloomberg) -- Goldman Sachs Group Inc., the bank that makes the most money from commodities, fixed-income and currency trading, said attempts to curb speculation may be “disruptive” to markets.

“The role that is played by non-traditional participants such as index investors and other financial participants often has been mischaracterized,” Don Casturo, a Goldman Sachs managing director, said in prepared remarks today for hearings at the Commodity Futures Trading Commission in Washington.

The testimony to CFTC Chairman Gary Gensler, a former Goldman Sachs employee, is part of the second day of hearings at the agency on whether there is excessive market speculation and how to respond. Gensler, who said yesterday that speculators contributed to a commodity “asset bubble,” is considering new position limits in energy markets after crude oil futures rose to a record $147.27 a barrel in 2008 on the New York Mercantile Exchange.

The agency should “seriously consider” setting strict federal position limits to curb speculation, Gensler said at yesterday’s hearing. Gensler has been chairman of the commission since May and was a former managing director at Goldman Sachs, which set a Wall Street earnings record in the second quarter. "

More on ... http://www.bloomberg.com/apps/news?pid=20601087&sid=ahZl9asR.GX8

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Oh boo hoo! Yeah, regulations may return the advantage away from the speculating HFT parasites (like Goldman "Tapeworm" Sachs) and back to the real world economic engine of long term investment.