Legislative Attack on the SEC

Sick of SEC examiners and the their practice of “sweeps”? Congressional reps, Michael Castle (R-Del.) and Vito Fossella (R-N.Y.) introduced a bill in the House of Representatives just before Christmas that would abolish the arm of the SEC that conducts them. The Compliance, Examinations and Inspections Restructuring Act of 2005, HR4618, would close the SEC's Office of Compliance Inspections and Examinations (OCIE), parceling out its duties to other divisions. In turn, sweeps would have to be approved by the five commissioners before beginning. Former Chairman William Donaldson says the idea is not such a good one.