Press Releases

Home » news » Press Releases

News and Media

View My
Year-End Report

Committee Democrats Reject Burgess Amendment To Prohibit Market Manipulation

Washington, May 20, 2009
Congressman Michael C. Burgess, M.D. (R-Texas), a member of the House Energy and Commerce Committee, tonight introduced an amendment to HR 2454, the Democrats’ cap and trade proposal, that would prohibit the transfer or receipt of carbon credit derivatives in an attempt to curb manipulation of the carbon credit market the proposal creates. After the amendment was rejected on a party-line vote, Rep. Burgess released the following statement: “There is almost unanimous agreement that financial derivatives, such as mortgage-backed securities and credit default swaps, are two significant sources of the problems our country’s financial system now faces. We all remember the impact speculation had on gasoline and diesel prices last summer.
Congressman Michael C. Burgess, M.D. (R-Texas), a member of the House Energy and Commerce Committee, tonight introduced an amendment to HR 2454, the Democrats’ cap and trade proposal, that would prohibit the transfer or receipt of carbon credit derivatives in an attempt to curb manipulation of the carbon credit market the proposal creates. After the amendment was rejected on a party-line vote, Rep. Burgess released the following statement:

“There is almost unanimous agreement that financial derivatives, such as mortgage-backed securities and credit default swaps, are two significant sources of the problems our country’s financial system now faces. We all remember the impact speculation had on gasoline and diesel prices last summer. This cap and trade proposal ensures a price for carbon credits and a market to trade the credits. We have no reason to believe this new market will not be subject to the same manipulations as we have seen before. My amendment would stop the invention of carbon credit derivatives before it even starts by prohibiting the transfer or receipt of these instruments. We cannot afford to set up this system without adequate protections in place to ensure the same manipulations do not occur.

“Tonight we had the opportunity to prevent the next Enron from happening. Unfortunately Committee Democrats don’t believe in preventing the same type of damage inflicted on our housing and financial markets from also being inflicted on the newly created carbon credit market.”


Congressman Michael C. Burgess, M.D., is a member of the House Energy and Commerce Committee and three of its subcommittees: Health, Energy & Environment, and Oversight & Investigations.  He is also a member of the bipartisan, bicameral Joint Economic Committee.  Prior to becoming a member of Congress in 2002, Congressman Burgess practiced medicine in North Texas for over 25 years.