Bringing you live news and features since 2006 

Comment: SEC’s tarnished reputation is a test for Obama

RELATED TOPICS​

The new US president already has a headache in the tainted reputation of the Securities and Exchange Commission.

The new US president already has a headache in the tainted reputation of the Securities and Exchange Commission. If the reputation of the country’s securities regulation is not restored, Barack Obama risks seeing his own image damaged.

Some critics even question whether the agency has a future, with speculation rife that new chairman Mary Schapiro may be given the job of merging it with the Commodity Futures Trading commission (which she headed in the 1990s under Bill Clinton).

Over the past year the SEC has been assailed over its failure to notice Bernard Madoff’s alleged USD50bn Ponzi scheme as well as over its failure to rein in the faulty risk modelling and excessive leverage that led to the collapse of investment banks such as Lehman Brothers and Bear Stearns.

Yesterday Harry Markopolos, a former investment manager, testified to Congress that the SEC staff were neither willing nor able to uncover what Madoff was really doing, despite repeated efforts by Markopolos to bring it to their attention.

If the SEC is to survive, changes need to be made, and fast. It will take more than new registration requirements for hedge funds to satisfy the agency’s many critics that it has learned the lessons from past failures and is capable of protecting the financial industry and investors from fraud and recklessness.

Latest News

Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
ETFs
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by