Now that the Republicans have increased their clout in Congress, we could end up with the same problems that brought the economy to its knees in 2008. Under the Dodd-Frank Act, the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) need to hire hundreds more workers to meet their mandate but without funding they cannot move forward. The agencies are currently only funded through March 2011 at 2010 levels. The SEC has said that any further delays will be “detrimental to investors and the markets” just as lack of oversight contributed greatly to the debacle of 2008.
The Act provides for establishment of new consumer protection agencies and better funding of the SEC and CFTC so that they can do their jobs overseeing brokers, dealers, and investment advisors. According to Julie Steinberg writing for the Wall Street Journal in her article entitled, “SEC and CFTC Hiring in Jeopardy as Republicans Slow Dodd-Frank”, Republican representatives Spencer Bachus, the incoming chairman of the House Financial Services committee, and Frank Lucas, incoming chairman of the agriculture committee, have requested a slow-down of the rule making process in order to discourage increased regulation. By refusing to fund the provisions of the Act, lawmakers are preventing improved oversight and delaying the establishment of over 1,000 jobs. Consumers could suffer as a result of poorly qualified investment advisors and unscrupulous practices left with nowhere but the courts to turn to for a remedy.
Page Perry, is an Atlanta-based law firm with over 125 years of collective experience representing investors in securities-related litigation and arbitration. While past results are not indicative of future success, Page Perry’s attorneys have assisted dozens of investors in recovering over $125 million from brokerage firms since 2005. Page Perry’s attorneys are actively involved in counseling institutional and individual investors regarding their investment problems. For further information, please contact us.