Wednesday, May 20, 2009

Bureaucracy To Get in the Way of the Fed's Plan to Make the SEC the Red-Headed Step-Child of Government Agencies

An article over at Bloomberg today lays out some of the details about the plans being drawn up to overhaul the financial regulatory system.

Some of the plans include pretty much marginalizing the SEC to the point of irrelevance, oh with the whole missing the impending financial crisis, and the Bernie Madoff Ponzi scheme thing. Much of the oversight would go to the super-geeks at the Fed and a new regulatory body, yet to be given a ridiculous name (how about Accountants with Badges Commission, A.B.C.? Yeah! I'll take other suggestions).

Not to worry though SEC fans! The agency has plenty of powerful and well known supporters that will more than likely stifle these insidious plans. Big shots like Arthur Levitt, Chris Dodd, and money bag pensions like CalPERS and the New York retirement fund all support the SEC in its current form, just not the substance (um, really?).

Oh, but M. Schape is working on that, hiring smart people who actually might end up doing something besides going to Kinko's. Problem is, she's currently getting cockblocked by the administration on discussions of regulatory changes, which is probably a little, um, awkward.

Here's to you, fighting the good fight, SEC! Don't let the bastards get you down!

U.S. May Strip SEC of Powers in Regulatory Overhaul [Bloomberg] Sphere: Related Content

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