According to The Wall Street Journal President Obama is asking for a 13 percent increase in the SEC’s budget and a 44 percent increase for the CFTC.
This would put the SEC’s budget at over $1 billion and the CFTC would be at $160 million. The administration hopes the SEC will use the additional funds to “pursue a risk-based, efficient regulatory structure that will better detect fraud and strengthen markets.” With the money, the CFTC would increase staff, and would like to regulate credit derivatives.
I am not taking issue with the spending, but I am interested in knowing what the money would be better spent on. Should the SEC and the CFTC spend more on prosecuting violations, imposing additional rules, or some combination of the two?