Former SEC Chairman Harvey Pitt writes a column in The Daily Beast arguing that the Wall Street reform bill that may go to final vote in the Senate today is a complete failure. Among other things, it sets the SEC up to fail:
"The SEC is given more rule-making, more studies and more onerous responsibilities than any other financial regulatory body. Worse, the SEC must now regulate 10,000 hedge funds and several thousand private-equity firms, but was denied what many other financial regulators have—the ability to self-fund its operations. The SEC presumably was denied this authority because the members of its Appropriations Committees don’t want to jeopardize campaign contributions from those the SEC regulates. In particular, the SEC won’t be able to inspect tens of thousands of new firms it will oversee—or pay to get the kind of expertise to compete with the private sector."