[oldembed src="https://www.youtube.com/embed/joWkLGgdcLU?rel=0" width="425" height="239" resize="1" fid="21"]

Bernie Sanders explained last year how excessive speculation was driving up the price of oil.

David Dayen with an important story about how an Obama-appointed judge jettisoned the part of Dodd-Frank that limited commodities trading. Since we are frequently squeezed by food and fuel speculators, this was an attempt to stop the worst abuses. Oh well! Not such a complete shock, since Wilkins refused to issue an injunction against speculators back in February, but you'd think a federal judge wouldn't want to make the rape-and-pillage policy quite so obvious:

A federal judge today threw out the Dodd-Frank provision that empowered the Commodity Futures Trading Commission to set position limits on commodity trading. Judge Robert Wilkins said in his ruling that the CFTC did not prove the necessity of position limits to curb runaway speculation, and that the law itself did not “constitute a clear and unambiguous mandate to set position limits, as the Commission argues.”

Here’s the punchline: Judge Wilkins was appointed by President Obama in 2010.

CFTC already set the position limits, and they were weeks from going into effect in the oil, grain, coffee, gold and other markets, 28 in all. At the time, Sens. Bernie Sanders, Maria Cantwell and others called it weak. Under CFTC’s rule, a single speculator could still hold as much as 25% of all deliverable oil supply in any given month. But now there will be no rule at all, unless CFTC can come up with a better rationale. Judge Wilkins sent the rule back to the CFTC for “further consideration.” But this, of course, is how Wall Street rules get watered down. The initial rule wasn’t all that effective, and yet the industry managed to litigate that away. Any substitute would have to be even more compromised to avoid the ire of the judge. And at that point it becomes close to meaningless.

This was actually somewhat expected since back when Judge Wilkins first heard the case in February. It nevertheless comes as a blow to those who want to curb speculation in the commodity markets, which has been held responsible by analysts for a host of price spikes in oil and food.

The lawyer representing the industry trade groups, particularly the odious International Swaps and Derivatives Association and the just as odious Securities Industry and Financial Markets Association, in this case? Eugene Scalia, Nino’s kid.

I have a couple reactions. First, from Rep. Maxine Waters, poised to become the Democratic ranking member on the Financial Services Committee.

The CFTC’s rules are critical to protecting American consumers from increasing fuel prices, which are partly the result of excessive speculation. Once again, special interests were able to delay and derail a key provision in Wall Street Reform that would protect the public. I urge the CFTC to persist on a position limits rulemaking after conducting the further analysis recommended by the court.

And now the statement from Robert Weissman, the President of Public Citizen: