Just when you thought the parasitism at the SEC could no longer surprise, we find ourselves stunned yet again: "The Securities and Exchange Commission, facing the probability that resurgent congressional Republicans will cut its budget, has put on hold part of the work it has been tasked with by the Dodd-Frank financial law. The SEC will delay setting up five new offices mandated by the law, including a new office to field tips from informants about wrongdoing that was a signature accomplishment of SEC Chairman Mary Schapiro. The so-called whistleblower office won't be staffed; its functions will temporarily be carried out instead by existing enforcement staff, the SEC said on its website. A new credit rating office, an office for municipal securities and two separate offices focused on investors and women and minorities are also on hold." In other words, let's all just sing Kumbaya and pretend our markets are supervised even as Wall Street continues to funnel trillions of NPV dollars in its pockets today, while sticking future generations with what is now nearly $14 trillion in debt.
More from Dow Jones:
The SEC said the work is "being deferred due to budget uncertainty."
The Dodd-Frank law authorized a series of budget increases for the SEC that would nearly double the agency's funding over the next few years. But the money must be appropriated by Congress. With Republicans back in control of the House of Representatives next year, it looks increasingly unlikely the SEC will see the increases that have been authorized.
Federal agencies are currently operating under last year's spending levels as Republicans and Democrats remain locked in an impasse over the budget. Some Republicans have vowed to cut spending to
The SEC's workload swelled with the passage of Dodd-Frank. It was tasked with writing more rules and regulations than any other federal agency to implement the law.
As a reminder the world's most corrupt, incompetent and porn-addicted organization has a budget of $1.23 billion.
Here's a thought: terminate Mary Schapiro immediately. That act alone will allow the SEC to actually regain about 120% of the credibility it has lost in the last two years. Then proceed with terminating everyone else and actually hiring grossly overpaid bureaucrats who actually know what a bid and an ask are. That way you won't even need a whistleblower office.
h/t London Dude Trader