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|Subject: SEC's Revolving Door Hurts...||Date: 2/11/2013 9:37 AM|
|Author: tim443||Number: 415588 of 477674|
It would appear I owe Wendy an apology. I assumed these people were civil servants doing the best job they could under government oversight (mostly ours are).
I've said before that the best regulators are former industry insiders who got bumped off the corporate ladder.
There is some discussion that it is not as bad as it looks since strong regulations actually add value to the regulator when he goes job hunting. }};-()
An interesting read somewhat showing both sides of the story.
S.E.C.'s Revolving Door Hurts Its Effectiveness, Report Says
By BEN PROTESS and SUSAN CRAIG | New York Times – 9 hours ago.. .
Robert S. Khuzami took a step through Washington's revolving door on Friday, departing his post as one of Wall Street's top enforcers en route to the private sector, where he is expected to reap millions.
A new report suggests that Mr. Khuzami, like other Securities and Exchange Commission officials who pass between Washington and Wall Street, will be well worth the pay.
"Former employees of the Securities and Exchange Commission routinely help corporations try to influence S.E.C. rule-making, counter the agency's investigations of suspected wrongdoing, soften the blow of S.E.C. enforcement actions, block shareholder proposals and win exemptions from federal law," the report says.
The Government Accountability Office issued a report in 2011 chastising the S.E.C. for failing to keep track of ethics advice the agency gives past and current employees, which the report argued could minimize postemployment conflicts of interest. The study, which described the S.E.C.'s policies as being consistent with those of other agencies, did go on to note that the financial system might benefit from the agency hiring outsiders well versed in Wall Street minutiae.
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