When all else fails, defund.
This technique is spectacularly on display in the $1.1-trillion federal spending bill unveiled by House and Senate negotiators Monday and scheduled for debate this week. The measure provides $215 million in funding for the Commodity Futures Trading Commission. That's one-third less than the budget the agency requested, and nearly $100 million less than it got a year ago.
"It’s not everything anybody wanted, but we’ve been working hard at it," said Sen.
"Simply put," Gensler said, "the CFTC is not the right size for the new and expanded mission
Someone's going to get it in the chops when the cop on the beat lacks the firepower to do his job. In this case, that someone is the investing public.
The same "defund-to-defang" method is being applied to the
If you think a 2% raise is enough to cover the SEC's vastly expanded duties under the Dodd-Frank financial reform act, then you're onboard with Rogers. But you'd get an argument from the SEC, which warned a year ago that its significantly expanded authority over "derivatives, private fund advisers, municipal advisors, clearing agencies, and credit rating agencies, among others, "couldn't be met under its existing budget "without undermining the agency’s other core duties." The speaker was Elisse B. Walker, the SEC's then-acting chair, who was then asking for $1.57 billion. The new appropriation is lower than even that year-ago request. One more disgusting fact: The SEC's spending is covered entirely by fees on the financial industry, so it has no effect on the federal budget.
The financial regulators aren't the only agencies getting hollowed out. As we reported in October, the IRS budget is down nearly 20% since 2002. Even before its operations were pared by the sequester, the IRS said it would conduct 18% fewer audits of major corporations last year compared with the year before.
Then there's the
There's no mystery about who drives the squeeze on regulators--it's the regulated industries, who natter incessantly into the ears of their bought-and-sold members of Congress.