David Kirkpatrick

January 6, 2009

SEC is about to get it from Congress

Filed under: Business, Politics — Tags: , , , — David Kirkpatrick @ 2:09 pm

Can’t say it’s undeserved. This year has been an abject failure of the meager regulatory role the SEC has been asked to perform over recent years. There wasn’t much to regulate, and what little was expected either didn’t happen, or was so incompetent it might have not been there at all.

Probably the incompetence was more damaging than no regulation because it gave all these illegal activities the veneer of legitimacy. I think the current crop of SEC officials, starting with Christopher Cox, should be held liable for some measure of the economic pain facing the US right now.

From the link:

Lawmakers on Monday raised a number of regulatory reform ideas for the Securities and Exchange Commission in light of the agency’s failure to identify an alleged $50 billion Ponzi scheme operated by New York investor Bernard Madoff.

“The inability of the SEC to identify failure at the Madoff funds for almost a decade has exacerbated cynicism among investors and delayed recovery [of the financial industry],” said Rep. Gary Ackerman, D-New York.

Madoff, who was arrested in December and charged with securities fraud, oversaw a fund that managed capital for investors of varying income, hedge funds, banks and institutions including foundations, pension funds and charities.

In response to Madoff’s arrest, a number of lawmakers on the House Financial Services Committee said they want to examine whether legislation should be drafted that reforms the way the SEC inspects investment fund managers, how fund accounting firms are regulated and whether agency commissioners should be prohibited from immediately taking jobs in the financial services industry when they finish their stint at the commission.

Others sought more resources for the SEC’s enforcement bureau and raised concerns about the expertise levels of agency fund oversight officials.

1 Comment »

  1. […] a reason Congress feels the need to look into the incompetence of the SEC of the last several years. Instead of competent smaller government, Bush seems to have pressed for […]

    Pingback by Total bailout cost heading toward $8T « David Kirkpatrick — January 6, 2009 @ 2:41 pm

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