Monday, May 11, 2009
SEC Shuffles Titanic Deck Chairs
"The [SEC], hoping for a better shot at catching the next big fraud, is working on plans to set up teams of specialists who focus on specific kinds of wrongdoing. ... '"Specialization" is a fancy word for being as smart as we can about how we do our job,' said [Robert] Khuzami. 'By better understanding products, markets and transactions ... we can better identify trends and patterns.' ... Inside the SEC, the overhaul is meeting with some misgivings among staff who fear a specialized system would be unruly to manage and pigeonhole lawyers into narrow fields within securities law. Others are excited about the changes", Kara Scannell at the WSJ, 29 April 2009.
I do not expect this "Titanic deck chair shuffle" to make the SEC any more effective at finding fraud. It evokes memories of SARBOX.