Will Obama Double the SEC's Budget?

David Feldman  |

Pres. Obama has recently declared that he’d like to see the budget for the Securities and Exchange Commission, as well as the Commodities Futures Trading Commission, double in the next five years. Of course, as we know, he will be out of office in less than a year, and the budget he is now requesting is his last. Plus, it’s not at all clear that the Republican-controlled Congress is prepared to accede to the lame duck President’s request - especially in a Presidential election year.

It seems the reason for the increase is much more for enforcement than finding ways to spur capital formation. It certainly would be great if more of the additional money were focused on job creation and easing the regulatory burden on small business. That said, it does seem the beleaguered SEC is woefully and chronically underfunded, and that from someone who would like to see our government be as small and debt/deficit free as possible. And yes, doing all we can to prevent the next Madoff or financial meltdown is also good.

But where does “let’s double it” become sound fiscal policy? As a storefront CPA said looking over the US government budget in the great movie Dave, “Who does these books?” Hopefully a reasoned and reasonable increase in the Commission’s budget will come, so they can address the many statutory burdens added to their plate in the last decade.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Comments

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
XOM

     

Can the Media Solve the Partisan Conflict?

Andrew McCarthy, Contributing Editor, The National Review; Michael Zeldin, CNN Legal Analyst; Celeste Katz, Senior Political Reporter, Glamour; Silvia Davi, SVP, Contributing Editor, Equities.com; and Doug Simon, CEO, D S Simon Media discuss how the media’s role has shaped the landscape for communicators and what the media is trying to do to reduce discord in society.

Emerging Growth

MGX Minerals Inc.

MGX Minerals is a diversified Canadian mining company listed on the Canadian Securities Exchange. MGX is engaged in the acquisition and development of industrial mineral deposits in western Canada that…