The Commodity Futures Trading Commission and the Securities and Exchange Commission both say they lack the resources to implement the responsibilities thrust upon them by the Dodd-Frank Wall Street Reform Act.
The CFTC is being asked to oversee a new industry – exchanges and execution facilities that handle and centrally clear as much as $550 trillion of credit default swaps -- that proved so hard to understand and protect that a global credit crisis in large part resulted. Yet its budget is going up less than $120 million a year.
The SEC already suffers from an inability to recruit investigatory talent strong enough to catch the next Bernie Madoff. Or, as the head of the House Financial Services Committee notes, is prone to watch out for porn instead of Ponzi schemes. Here’s how the numbers stack up. You judge whether they can handle the demands of the reform that is supposed to be coming.
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