One cannot assume that a supervisory structure designed to stabilize very large banks is equally well suited to other financial entities. Given the considerable differences in how such institutions and funds are structured and operate, one should expect that applying the same regulatory standards would yield at least some unexpected and undesirable outcomes.
As you undoubtedly know, it is the height of the election season in the United States; the first Presidential debate was held last night. Much is at stake in this process – for Americans as well as for those abroad.
Proposed regulations by the SEC are bad for investors, threaten the ability of money-market mutual funds to provide capital, and would pose serious economic risks.
In the past decade, the Securities and Exchange Commission’s budget has increased threefold and the fundamental problems remain. For the sake of investors, who have lost billions in fraudulent schemes that should have been discovered, it is high time that these organizational issues be addressed.
Dodd-Frank overall is a poorly drafted statute that drastically expands the power of the federal government, creates new bureaucracies staffed with thousands, and does little to help the struggling American citizen.
Despite a $160 million outstanding lifeline, Treasury misrepresentation paints a rosy picture of success.