By Robert Schmidt and Jesse Westbrook
May 20 (Bloomberg) -- The Obama administration may call for stripping the Securities and Exchange Commission of some of its powers under a regulatory reorganization that could be unveiled as soon as next week, people familiar with the matter said.
The proposal, still being drafted, is likely to give the Federal Reserve more authority to supervise financial firms deemed too big to fail. The Fed may inherit some SEC functions, with others going to other agencies, the people said. On the table: giving oversight of mutual funds to a bank regulator or a new agency to police consumer-finance products, two people said.
The 75-year-old SEC, chartered to oversee Wall Street and safeguard investors, has seen its reputation tarnished as some lawmakers blamed it for missing the incipient financial crisis and failing to detect Bernard Madoff’s $65 billion Ponzi scheme. Any move to rein in the agency is likely to provoke a battle in Congress, which would need to approve the changes, and draw the ire of union pension funds and other advocates for shareholders.
“It would be a terrible mistake,” said Stanley Sporkin, a former federal judge and enforcement chief at the SEC. “Whatever the SEC has done or didn’t do, it is still the premier investor protection agency around.”
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6 comments:
They might as well shut them down, they have not been doing anything for hears except collecting a pay check.
Good Riddence!
The SEC hasn't protected investors in my lifetime.
When Obama's done with the SEC, I hope he goes after the IRS.
11:26am
When obama's done we have nothing,
he will be an absolute power or dictator. What a jerk! you and obama!
We don't need to strip the SEC of powers. We just need to strip the SEC of Bush appointees. Problem solved.
Obama 2012.
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