From Barney Frank just now....oh, this will be an interesting year! This is still early but the ramifications could affect the Sarbanes-Oxley 404(c) permanent reprieve for non-accelerated filers which could cause a need for external audit to review the internal controls of all public companies...we will keep you posted.
For Immediate Release
Tuesday, March 6, 2012
House Republicans Vote Again to Block Full Funding for the SEC
WASHINGTON– Republican Members of the House Financial Services Committee today voted to reject an amendment which calls for fully meeting the President’s funding request for the Securities and Exchange Commission. Twenty-five Republicans voted against the amendment and seventeen Democrats voted in favor of it.
The amendment was introduced by Congressman Barney Frank, Ranking Member of the Financial Services Committee. In his remarks, Frank pointed out that the amendment would be budget neutral because the SEC’s funding is offset not by taxpayers, but through a small fee on securities transactions.
Republican Members spoke out against the amendment, claiming that recent financial scandals demonstrate that the SEC has done an inadequate job and thus doesn’t deserve the funding requested by the Obama administration. Congressman Mel Watt (D-NC) said that “according to you [Republican Members], the SEC wasn’t proficient and according to us [Democratic Members], they didn’t have the resources to be proficient… but you don’t make an agency more proficient by starving it.”
Today’s vote on SEC funding follows a year-long battle between House Republicans and Democrats regarding funding for both the SEC and the Commodity Futures Trading Commission, two of the most important agencies charged with carrying out the 2010 Wall Street Reform and Consumer Protection Act. Some Republican Members have advocated for full repeal of the reform legislation but that is likely impossible given Democratic control of the Senate and a Democratic President in the White House. Instead of working for outright repeal, Republicans have fought to slash funding to the agencies that will administer it and to delay the implementation of key provisions. They also refused to consider any nominee to head the Consumer Financial Protection Bureau – forcing President Obama to make a recess appointment
To view the vote tally on the Frank amendment click http://democrats.financialservices.house.gov/FinancialSvcsDemMedia/file/markups/3_6_12%20Vote%20Tally%20for%20SEC%20full%20funding%20amendment.pdf
FULL TEXT OF THE FRANK AMENDMENT
Page 3, after the last paragraph relating to “Securities and Exchange Commission”, insert the following new paragraph:
“The Committee recognizes the SEC’s need for additional resources to complete more investigations and inspections, to make investments in technology to improve its ability to perform new and existing responsibilities, and to undertake its new duties and utilize improved enforcement authority under the Wall Street Reform and Consumer Protection Act. The Committee recommends funding the Commission at the Administration’s FY 2013 Budget request to provide better protection for investors and to more effectively oversee our capital markets. The SEC budget is funded by small industry transaction fees, so fully funding the SEC comes at no cost to the taxpayer."