The House Financial Services Committee under Republican Chairman Spencer Bachus rejected a proposal to increase the SEC’s budget by 18.5 percent to $1.56 billion to pressure the SEC to back down on its recommendation to impose a fiduciary duty standard on broker-dealers. Congressional Republicans tried to justify their rejection of the needed funding by pointing to the SEC’s failures to prevent the Madoff ponzi scheme and other scandals. Republicans also criticized the SEC’s supposed failure to provide adequate justification to back up its recommendation to impose the fiduciary duty standard on Wall Street.
But Republican criticism of the SEC is just political spin; they are really digging in their heels against the fiduciary duty standard, according to Mr. Clark. (“What’s Behind Congressional Freeze on SEC Funding,” by Bob Clark, AdvisorOne).