SEC “A Tollbooth”

According to Bloomberg, James Kidney, a retiring SEC lawyer, was afflicted with a case of truthiness at his retirement party.

The SEC has become “an agency that polices the broken windows on the street level and rarely goes to the penthouse floors,” Kidney said, according to a copy of his remarks obtained by Bloomberg News. “On the rare occasions when enforcement does go to the penthouse, good manners are paramount. Tough enforcement, risky enforcement, is subject to extensive negotiation and weakening.”

Kidney said his superiors were more focused on getting high-paying jobs after their government service than on bringing difficult cases. The agency’s penalties, Kidney said, have become “at most a tollbooth on the bankster turnpike.”

As at any and all government agencies, SEC employees look after themselves at great cost to the taxpayer. Perhaps the most insidious problem with the SEC is not its massive consumption of porn but its pretense of protecting investors, especially individual investors, while actually protecting the industry. This agency should be shut down – reform is impossible.

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