Former Head of the SEC Artur Levitt was on Bloomberg Radio this morning and was addressing the chatter around whether the SEC or the Federal Reserve would be the primary financial market regulator going forward (with the SEC losing some power in the process).
The idea with the above as I understand it is that if some institutions are too big to fail and therefore the Fed has to step in if the crap hits the fan, giving the Fed more oversight before such events takes place make sense. So far so good.
What shocked me about the interview was that Levitt said something very much like, "The SEC's job is to prosecute crime, not to anticipate and prevent it." I guess that gives them a free pass on being late to the party with almost every major financial scandal in his eyes. Not in mine.