I hadnt heard about this before. Had you? (Plenty of pertinent links.) The Securities and Exchange Commission has touched off a major bureaucratic scuffle with its fellow financial regulators by proposing to, in the words of one Democratic aide, rip the heart out of Dodd-Frank. The SEC, following the wishes of one of its Republican commissioners, has initiated a turf war over which agency gets to monitor a key corner of the financial system. — At issue are so-called asset managers, companies like BlackRock, Fidelity and Pimco, who manage investments on behalf of individuals and groups through mutual funds and other vehicles. Asset management firms collectively control an astonishing $53 Trillion in investor funds... Reformers might have less of a problem with the SEC handling asset managers if they showed any interest in stiffer oversight of the financial industry in recent years. The SEC has been slow to write Dodd-Frank rules, punted on rules for money markets, completely undermined proposed rules for credit rating agencies, let banks off the hook for toxic securities designed prior to the financial crisis, and has been blasted as irresponsibly weak by their own ex-lawyers. — This episode furthers the impression that the SEC cares more about its friends at BlackRock and other Wall Street giants than about safety and stability for investors… We have enough problems with financial regulation to have a turf war impede the few mechanisms we have to deter runaway risk. The SEC has covered itself in shame during the crisis years, and this preoccupation with jurisdiction shows that the black marks on their record haven’t gone away.
Posted on: Mon, 30 Jun 2014 03:08:39 +0000
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