WASHINGTON — The Republicans on the House Committee on Oversight and Government Reform took aim at the country’s lead financial regulator in a biting report Tuesday.
The report, entitled “The SEC: Designed for Failure,” starts with 10 accusatory bullet points outlining the Securities and Exchange Commission’s structural problems revealed by recent years’ “failures,” a term used 43 times in the 33-page document.
During a time when the SEC has been attacked on all sides for missing large scandals affecting American markets, it is involved in a frenetic effort to introduce changes to address such shortcomings. The GOP report culminates a six-month effort to add insights into what more could be done.
“The Commission’s failures are symptoms of interlocking, systemic problems,” derides the report, which recommends congressional action to fix the regulator.
Though it comes out right before the expected passage of the regulatory reform package, the committee did not plan for the report’s release to coincide with the bill hitting the floor, according to Kurt Bardella, committee spokesman on the Republican staff.
Democrats responsible for drafting reform did not address this report’s recommended actions in the financial regulatory reform currently before the Senate, Bardella said.
“It would move the financial industry regulation backwards,” he said.
The report recommends Congress mandate the SEC revise disclosure and hiring practices; that it add a chief operating officer to coordinate day-to-day operations; and that it sponsor a detailed independent study of the whole organization.
The SEC responded that it is addressing the issues already.
“The Minority staff report discusses past issues that have been the focus of Chairman [Mary] Schapiro’s efforts since taking office,” John Nester, SEC spokesman, said.