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Chuck Schumer To Introduce Legislation Permitting SEC To Fund Itself With Penalties Collected From Wall Street
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One wonders why it took so long to incentivize the SEC to actually prosecute wrongdoing on Wall Street. One also wonders how much of this new windfall will remain once all the Madoff-related lawsuits against the SEC clean the regulator's clock.
Amusingly, the $1.5 billion brought in annually via fees (nearly double the regulator's annual budget), go to some "general pool", with none of this downstreaming to the SEC.
Maybe Mary will finally stop complaining about how woefully underfunded her deplorable agency is.
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YES OH YEAH BABY
GET THE MONEY SKUNKS ON THE TRAIL BABY!!!!
SEC WILL GLADLY STEAL THEIR PAY FROM THE ORIGINAL GANGSTAS!!!
Votes TD, votes! Schumer panders to the victims of Madoff...as if WS will allow this?
How is that pandering?
It's a politicians job to push for legislation that meet the needs of his/her voting constituents is it not???
Pandering is when you proposed something that you know will not become law!!!
Better late than never, although I'll believe the change when I actually see it.
Gee, how long until Goldman, JPMorgan, Wells, etc, send Chuckie a letter explaining that an action such as this would be fraught with the peril of systemic risk, and blah, blah, blah....
and then there is this:
FoxBusiness to bump Alexis Glick in favor of a Simulcast with Don Imus - and if you do not believe me read the following:
http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=20090903...
The FoxBusiness channel streams live at http://www.thestreet.ca
now if only CNBC would simulcast Howard Stern then Business TV would be fully redeemed
Why not institute bonus plans for SEC employees. This is bad, very bad. The SEC just needs to do its job, this incentivising of gov't regulatory agencies is a very dangerous concept. If you think fraud is rampant now, wait til you get the sherrifs collecting duties, doing shakedowns, etc.
The SEC is run by adults, not ninth graders:
Where is the rule of law?
Agreed, just going to create another monster. Think IRS but worse. I would get rid of the SEC entirely and never, ever use tax payer money to bail anyone out. I would get rid of the FDIC as well, that would force people to pay closer attention to who they bank with. I think everyone needs to start keeping their money in their own house. We don't get returns on our money anyway.
No wonder gun and safe sells are up.
Teacher kickbacks for higher grades, now that would rule!
FAA can pay for itself - violate and fine airlines.
Police officers can be paid a % of traffic tickets. Oh wait, that was covered in Serpico and LA Confidential.
More of that bankee bank easy credit for the uber rich.
Hell ya, sick it.
I XXX the perfect world I live in.
I completely agree with John. This would create a situation where the SEC is not only in bed with the people they investigate, but also directly funded by them. A "public-private partnership," if you will. Let's see...what could possibly go wrong?
Why the f*ck does everyone need an 'incentive' to do their job now... god help us all.
You're right:
http://www.ted.com/talks/dan_pink_on_motivation.html
Uuuumm. Because, as usual in this country, everyone wants the SEC (or whatever agency) to "do its job" but nobody wants to pay for it. The US is the ultimate free-lunch society.
I guess bankers (or anyone in any business) shouldn't reaaly need bonuses or other incentives to "do their job"??
perhaps they can offer bonuses too, you know to really incentivize (sp?) the auditors. My goodness can you imagine how cutthroat it would be if the same structure that allows capitalism to get out of control were used to reign it in?
If the SEC charges fees to those they regulate that is twice their budget, then they are effectively funded by those they regulate. For example, the NRC is obligated to charge in fees those they regulate 90% of their budget. Any penalties go into the general Treasury. Out of the general Treasury is where agencies are funded.
Tyler: One wonders why it took so long to incentivize the SEC to actually prosecute wrongdoing on Wall Street. One also wonders how much of this new windfall will remain once all the Madoff-related lawsuits against the SEC clean the regulator's clock.
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This doesn't change anything, neither does increasing SEC funding. The problem is that SEC lawyers do better career-wise by doing enough investigating to make a name for themselves, but not enough to rock the boat. There are alternatives, like having elite bureaucrats like France and Britian use, or like authorizing plaintiff attorneys to bring SEC enforcement actions and giving them a cut of the penalties, fines, etc. Nothing is perfect though. The "elite" FSA pushed for light touch regulation. Plaintiff lawyers will bring meritless suits more often than the SEC would.
The enforcement director who resigned in disgrace after Markopolous testimony, landed a very lucrative partnership with a white collar criminal defense firm in DC. I wonder if she is barred from representing clients whom she investigated? Conflict of interest!
No different than the Federal Energy Regulatory Comission who have some SERIOUS teeth...we are talking $1M per day, per infraction fine authority.
When the SEC get's them kind of balls, things will start to sort themselves out.
hopefully
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Fight Fire with Fire!
Go SEC and tear Goldman a new one!
SEC is the financial equivalent of Chris Farley
LOL...double fart!
in a van down by the river
At 4bucks whilst wearing iPod...
Actually CNBC simulcast better than Howard.I get a feeling I am watching a porn movie when I look at their ladies anchors pictures. But who neds Murdock's or Immelt's propagada when one has TD who gives you all the in depth details as they are without a twist?is there such a thing as zero hedge addict?I have become one,and I have to look at the sight even at 1:00 am when I know there is nothing to be published at this time..........
Welcome to the world of Financial Porn. Your symptoms reveal addiction. Please follow the line to room #9, you will treated for coping with Disbelief addiction....;-)
But I thought bonuses were a BAD thing....WTF?
It will not hold up in the courts. The first prosecution that the Sec files after they are permited "To Fund Itself With Penalties Collected From Wall Street" will be dismissed after lawyers argue that the investigation was tainted by the need to fund salaries and money bonuses for SEC employees.
A proposal was made not to long ago to allow DEA agents to receive 10 percent of drug related money seized during a narcotics investigation. Needless to say that the proposal was dropped. BTW, the Mexican federal police do receive a percentage of seized drug money.
The Senator is an imbecile.
Tyler,
Are you sure you got this story right? I'm searching all the news feeds and it looks like this is funding via "FEES" not "FINES".
Can you confirm?
TIA,
Popo
Fees with possibility of using fines.
http://www.marketwatch.com/story/sen-schumer-eyes-proposal-to-expand-sec-funding-2009-09-03
Fight immorality with immorality.
Funding law enforcement with the gains of law enforcement is a formula for bribery and third world police state. Don't people like Schumer have any brains?
The answer to your question is 'No'.
Works for the DEA
can't wait to see the unintended consequences of this one
My guess is that the SEC's fees going into a "general pool" was how the banksters wanted it. That way they could continue to dangle the "we are the only way out" carrot in front of anyone at SEC that had talent, while at the same time being able to lean on their paid-for Congress-beotches to cut SEC funding (and projects) any time they needed more slack in enforcement.
The way you domesticate/enslave a wild animal is you tie it up to a post and starve it. When it is nearly dead, you start feeding it. When it is brainwashed into thinking that you are it's only source of survival, you've won.
This is the world of regulatory capture.
cougar
When reforms for the SEC begin sounding like a Michael Vick's dogfighting deposition, it's time for some serious reform.
Private exchange commission arbitration courts, please!
Someone pointed this out above so my apologies, but how many youngsters @ the SEC intend to stay there for more than say 3-5 years, or however long it takes to make a name for themselves that allows them to GTFO of dodge and land a private-sector gig?
Great idea actually...
Give the SEC the same tools/laws that the DEA uses to take down Colombian and Mexican drug lords. Heck... the DEA should be used to train these boys... don't forget to give them guns...lotsa guns!
The proceeds would be used to fund new investigations and even sting operations. Perhaps a prime-time spin-off ala 'COPS' or something to get the public behind it...
Just picture these guys being chased shirtless down Wall St.
Priceless...
Except it would be a bunch of obese Madoff's waddling down the sidewalk wheezing and flinging sweat, violently pushing mothers with strollers out of their way, then utterly failing to vault over the turnstile into the subway. Epic fail.
I don't own a TV these days, but I'd go out and buy one just to watch one episode of that.
cougar
You've got a point coug ... it's probably going to be a slo-mo kind of chase.
Grannies on electric scooters armed with tasers then!
I would like to get some stats on how many republicans work for SEC. How can you work for a government agency whose job is to regulate and enforce, when you are a republican. Republicans, by definition, do not believe in regulation. I don't think you can have atheist priests in the Catholic church.
Maybe that's why SEC (and the rest of government) doesn't work, when half the people working for government, are actually working AGAINST government.
http://www.finra.org/web/groups/industry/@ip/@reg/@rulfil/documents/rulefilings/p119834.pdf
FINRA FUNDING...SRO Where were they during the raping of our pension funds, 401K, etc???
Traffic tickets issued dropped 70% in my city so the Chief of Police ordered all his officers to issue a minimum of one ticket per shift. Even if they are not traffic cops they have to issue a ticket. It is a funding issue.
I'd be like Switzerland and leave if I could.
Get ready for the SEC to "investigate" 45 million day traders who made $100 because the markets opened 8 seconds early. Each will be fined $2500. In the meantime, GS will be running dark pools on the metro in DC
Under the current regime the SEC does not "eat what they kill". I am not so sure that turning them into "non criminal prosecuting machines with NO Criminal subpoena authority or capability is the "right " answer. Do we really want the light weights ginning up "traffic ticket (BTW like FINRA now does) or do we want the strike fighters for America?
Good heavens, seems IF the folks "doing" their job were kept and the ones that were not, fired and their names and faces printed, maybe we would not have to turn to new stupid ideas to repalce the old ones. What ever happened to honor, service and integrity? Bet ya, a lot of these SEC folks are sending their resumes to Goldman now that they know the system...just like our congressmen.