Stockman Scott's Political Debate Porch Message Board

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Politics : Stockman Scott's Political Debate Porch

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To: stockman_scott who wrote (8324)	10/24/2002 10:45:47 AM
From: H James Morris	Read Replies (1) of 89467

>>Pitt doesn't have what SEC needs<< Pitt doesn't have enough $cash. >>CAPITAL WRAPUP The SEC's Cash Crunch When corporate crime was crowding every other story off Page One, Washington seemed eager to pump money into the Securities & Exchange Commission. The Sarbanes-Oxley Act promised a 67% boost in funding, but because of the budget impasse, the SEC hasn't seen a dime of it--even as its expenses are rocketing up. With Congress funding most of the government one week at a time, spending has been held to last year's levels--about $460 million at the SEC, far short of the promised $766 million. The SEC added 100 new lawyers and accountants last summer, but if the stalemate continues, it has no hope of hiring the 300 to 400 staffers necessary to meet Sarbanes-Oxley's mandate for new rules and tougher enforcement. The one bright spot: Congress promised to bring SEC salaries up to the level of those at the Fed and other financial regulators, and it will fund at least a first round of raises. But a bigger risk looms. In November, when the new accounting oversight board starts staffing up, its first-year costs of $25 million to $50 million will be drawn from the SEC's budget. Congress designed this loan as a quick way to get the board running--but with funding frozen, that will leave the SEC even more strapped. SEC Chairman Harvey L. Pitt wants more money but won't buck the White House, which insists that no agencies get increases until Congress passes its regular spending bills. That's battering the morale of overworked lawyers and accountants investigating corporate fraud. If cash doesn't come soon, the the SEC crunch could become a crisis. By Mike McNamee<<

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