Go SEC Go!
Get out your pom poms — a cheer for the U.S. Securities and Exchange Commission (SEC) is in order. The agency has had multiple detractors in response to some recent goofs (Madoff, Stanford Financial), not to mention strong criticism and suspicion over various enforcement determinations.Today it was revealed there are multiple and extensive insider trading probes underway. The first step in any effort to restore trust and confidence in the financial services industry must be an active enforcement capability with meaningful consequences. By many accounts, the investigation and enforcement functions at the SEC have been in great disarray until recently. However, the current chair and commissioners have noticeably improved both the morale and motivation of applicable staff. Most importantly, they have been increasingly active and bold in restoring meaningful oversight and consequences to wrongdoers. We should give credit where credit is due, and Dodd-Frank debates should ensure adequate resources for the SEC. Go SEC go!