SEC struggles to deal with USA's complex financial industry
SEC is struggling to deal with USA's increasingly complex financial industry
The inability of the Securities and Exchange Commission (SEC) to keep up with
high-tech changes in USA’s financial industry has been blamed for its failure to
stop complex operators such as Madoff despite repeated warnings.
The agency was reportedly warned several times of Madoff’s alleged fraud, but
nothing happened, according to
Associated
Press.
‘It’s not a 21st century institution; they’re all living on their past glory,
which was great, but it’s gone,’ said Isaac Hunt, an agency commissioner from
1996 to 2002.
Regulating USA’s 10,800 financial advisers is only one small part of SEC’s
responsibilities. Numbering 3567 employees, including clerical workers, it is a
relatively small bureaucracy overwhelmed by its workload, others told AP.