Proposed Law Would Raise Funding and Salaries at SEC

A Senate panel has passed legislation that would increase Securities and Exchange Commission funding by $70 million over the next two years and lift salary caps for SEC staffers.

The Senate Banking, Housing and Urban Affairs Committee approved a package of SEC-related legislation without amendments and little discussion on Wednesday.

In addition to increasing the SEC’s budget for 1990 and 1991, the proposed package would let the SEC lift caps on employee salary, especially crucial entry-level staff attorney posts.

Most other federal financial regulators were given that authority by the savings and loan bailout bill passed earlier this year.

At his confirmation hearing before the same committee last week, Richard C. Breeden, the Bush Administration’s nominee for the SEC chairmanship, said raising staff pay was one of his top priorities.

“We don’t want a thrift crisis in the securities markets,” said Sen. Christopher Dodd, D-Conn., chairman of the subcommittee that drew up the legislation.

Noting the high turnover rate caused by salaries that are not competitive with the private sector, Dodd added, “We simply must have an agency that has the funds and expert staff to keep our markets clean and keep them sound.”

The legislative package must still clear the Senate Appropriations Committee and the full Senate and House.