Mamas, Don't Let Your Babies Grow Up To Be Regulators..
"Investors Top Priority for S.E.C., Chief Says
By THE ASSOCIATED PRESS
November 12, 2005
WASHINGTON, Nov. 11 (AP) - The chairman of the Securities and Exchange Commission told a Wall Street audience on Friday that the agency would be sympathetic to complaints about overly burdensome regulation but that it would continue to put investor protection first.
Christopher Cox, named by President Bush last spring as the government's top market regulator, said that under his tenure the S.E.C. would not reopen and contest every prior regulation. "
That's rich. "Continue to put investor protection first."
For those new to interpreting Beltway-speak, allow me to translate.
What that means is that the agency will continue to make public statements which make it seem interested in the plight of those who have been methodically screwed by Wall Street. It will continue to fail to enforce any rules or regulations that would diminish the ability of Wall Street to engage in the wholesale theft of America's savings. It will honor the illegal grandfathering of past failures to deliver and will continue to turn a blind eye to the looting of the capital markets represented by the REG SHO list. It will work hard to delist companies with huge numbers of FTD's, prioritizing the safekeeping of the ill-gotten gains of the perpetrators over the protection of investors and vicimized companies.
It will interfere when groups like the NASD pass rules with real teeth to them, instead directing them to cease and desist so that it can pass its own non-rules designed to allow the miscreants to rule the roost. It will target dangerous felons like Martha Stewart while ignoring the theft of hundreds of billions of dollars. It will act as a buffer between any lawmaker who wants to initiate meaningful change and the members of the Wall Street establishment who benefit from lawless predation. It will sneer at investors who are smart enough to realize that it isn't doing anything to protect them.
In short, it will behave precisely as it has for the last decade or two - like a corrupt, capricious bureaucracy co-opted by those it was intended to police.
As far as not re-opening or questioning past regulations, I believe that we can all now rest assured that the egregious violation of the public trust that is the Reg SHO grandfathering provision will be upheld until a court of law forces the SEC to recognize what most upright bipeds can, even from afar: that allowing an unknown number of unsettled trades to remain unsettled in perpetuity is in direct violation of Congress' easily understood directive in Rule 17A, which mandates that ALL trades must clear and settle promptly (note that unlike Animal Farm, we don't find any hastily penciled in language saying, "All except the last 10 year's worth of unsettled trades").
My capsule summary on this is that we can expect nothing except glib, vacuous rhetoric and total inaction from the SEC. In keeping with that organization's performance since the mid-eighties.