Her resignation from the Commission does not come as a surprise as she informed President Obama in January that she planned to leave the CFTC before her term ended (see Daily GPI, Jan. 28). Asked where she intended to go after the CFTC, Sommers told NGI, “I don’t know. I have not started looking for my next opportunity yet.”
Before leaving the agency, she pledged to carry out the investigation into MF Global Holdings Ltd. and former CEO Jon Corzine, a former U.S. senator and New Jersey governor; and an assistant treasurer for illegal use of customer money. The CFTC last Thursday filed a proposed order against MF Global and Corzine, which is the subject of review by the United States District Court for the Southern District of New York (see Daily GPI, June 28).
Because CFTC Chairman Gary Gensler had ties to MF Global and Corzine, Sommers was picked to lead the agency’s investigation into the collapse of the company, which took with it an estimated $1.2 billion in customer funds (see Daily GPI, Nov. 14, 2011).
Sommers also had said she intended to stay until the Dodd-Frank rules were completed at the CFTC. She has sat on the Commission for several years while it worked on Dodd-Frank regulations to reform the over-the-counter derivatives market.
Sommers was first sworn in as Commissioner in August 2007 for a term that expired in April 2009. She was then renominated by Obama to serve a second term.
Some CFTC observers consider Christopher Giancarlo, executive vice president of the brokerage firm GFI Group Inc., a likely candidate to replace Sommers. “It’s not a fact, so we’re not going to comment,” said a spokeswoman for GFI. She said the rumor of Giancarlo succeeding Sommers has been circulating for a couple of weeks.
Giancarlo is no stranger to Capitol Hill. He has testified several times about the challenges of implementing the Dodd-Frank Wall Street Reform Act.
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