SEC Inadequacy Instigates Phase II of Financial Crisis

Goldman Sachs: Scapegoat for SEC and U.S. Government Shortcomings.

Security Exchange Commission

(PORTLAND, Ore.) - Who is the SEC? Are they in the business of financial industry oversight, or just another privatized bureaucracy of the U.S. Government? A product of the last great financial disruption in American History, can the SEC truly drive the exit of this financial disarray, or will they open another, “Pandora’s Box”?

In a recent depiction by CNN regarding the compromise of policy at the SEC, it was determined that “as the country was sinking into its worst financial crisis in more than 70 years, the Security and Exchange Commission employees and contractors cruised porn sites and viewed sexually explicit pictures using government computers”.^[1]

The SEC is not adequately doing their job during this financial crisis, and is using a well established position to impede but also impact the financial industry. This can be realized by the recent move of the SEC against Goldman Sachs and other potential Wall Street firms. Is the SEC equipped, or capable of supporting a major movement to fix the financial industry when there are less than adequate controls in place to discern their own actions?

Formulating solutions that can reposition the financial industry takes more than regulatory bullying; the SEC is not all empowering, in fact they are, as at risk as those that they investigate. The government, on the other hand, has more control of the SEC than realized and plays the public/private card to stave off their interests or influence in the outcomes of the financial industry.

Recently the Goldman Sachs pursuance has taken on a new twist; they are now being investigated by the U.S. for criminal activity. This new direction by the U.S. attorney’s office is cited on Yahoo News to have originated “from a criminal referral by the Securities and Exchange Commission” (SEC)^[2].

Is this the bottom, or the abyss of the U.S. financial industry? Is the U.S. government going to use the SEC as a viable source of oversight of the financial industry when they cannot even oversee their own internal issues? This financial disarray has caused many concerns for the economic drivers and those participating but who is regulating the regulators, and how can the regulators point fingers if they have no solid footing of their own.

^[1] Report: SEC staffers watched porn as economy crashed - cnn.com

^[2] AP source: Criminal probe of Goldman under way

Stephen holds an MBA from Marylhurst University where the emphasis brings business concepts in line with cultural awareness. He says through this combination, there is a greater understanding of the importance of cross cultural involvement in business. There are many areas of the global business world that are intriguing, and Stephen sees an expansive world of business opportunities continuing to emerge. You can write to Stephen Atma at: sjatma@comcast.net