House Committee Votes To Boost SEC's Power
Christopher Weber
Correspondent
Posted:
11/4/09
The House Financial Services Committee has voted to give federal regulators more power and resources to seek out and prevent abuses on Wall Street. The vote was 41-28.
As part of the new legislation, the Securities and Exchange Commission will get money to pay bounties to tipsters on fraud cases. The SEC will be able to prevent anyone who breaks certain laws from future employment in any job related to securities. The commission's budget will also be doubled over the next five years, the Washington Post reported.
As part of the new legislation, the Securities and Exchange Commission will get money to pay bounties to tipsters on fraud cases. The SEC will be able to prevent anyone who breaks certain laws from future employment in any job related to securities. The commission's budget will also be doubled over the next five years, the Washington Post reported.
The legislation was sponsored by Pennsylvania Rep. Paul Kanjorski, who led the panel's investigation into Bernard Madoff's massive investment scheme. Kanjorski, a Democrat, said he wanted to make sure the government doesn't miss the warning signs of future fraudsters.
"In the last five years, there's been a significant change and a greater sophistication in the financial service industry than has ever happened in the history of mankind," Kanjorski said. "So we're going to have to change fast."