Wednesday, June 27, 2007
No fireworks or surprises at the testimony of the five SEC Commissioners before the House Financial Services Committee hearing yesterday, as, for four hours, the Commissioners fielded a "grab bag of questions" (as the Washington Post put it) from the Representatives. Barney Frank pronounced that "the commission as currently constituted has hit the right balance." The Congresspersons expressed concern about class action suits and the agency's refusal to grant another delay for small businesses to comply with section 404. In response to a question, Chair Cox said the agency has opened about a dozen investigations into CDOs and CLOs, complex financial products that are key components of LBO financing. See WPost, Questioning the SEC, Gently; NYTimes, Chairman Denies That S.E.C. Favors Business; WSJ, SEC Probes CDOs and Bear Funds.