August 5, 2006
Levitt's Call for a Unified SEC/CFTC
Arthur Levitt's editorial in the Wall Street Journal today called for, among other things, a unified SEC/CFTC. It sounds good but assumes that government agencies work better than they do. We are better off having two agencies that compete with each other and keep each other honest, just as we are better off with state attorney's general keeping the SEC honest. One federal agency with control over all securities market regulation and prosecution is a recipe for one agency that is self-righteous and inflexible. What we have is better than what he wants.
TrackBack URL for this entry:
Listed below are links to weblogs that reference Levitt's Call for a Unified SEC/CFTC:
Regulatory agencies don't compete: they expand and waste resources investigating overlapping jurisdictions.
For example, in business opportunity fraud there are at least 3 federal agencies which "compete": the FTC, US Postal, and the DOJ. None of this competition has helped reduce fraud.
Posted by: michael webster | Aug 5, 2006 1:42:46 PM