SECURITIES

Commodities Enforcement Policies Defended: Commodities Futures Trading Commission Chairman Wendy Gramm defended her agency against charges that it has been lenient in punishing wrongdoers and left investors vulnerable to fraud by unscrupulous brokers. The CFTC has come under fire from lawmakers and even one commissioner for scaling back penalties set by its administrative law judges against brokers. Gramm, who favors a free-market approach to regulation, said her agency has not been lax. “The record is clear that the commission has not been tolerant of wrongdoing or soft on wrongdoers,” she told a House panel probing CFTC enforcement. “We have been very, very strong in protecting the customers.” Gramm, appearing with the other four commissioners, said the CFTC has affirmed 70% of appeals.