Why SEC not Goldman must reform

Author: | Published: 28 Apr 2010

The Securities and Exchange Commission’s (SEC) investigation of Goldman Sachs highlights the need for reform – of the regulators themselves. While the facts of the Abacus CDO are disputed, the case has exposed the SEC’s difficult relationship with the banks it regulates.

“The US environment is so piecemeal that the whole regime should be redone,” said one lawyer. “The SEC does not have a trusting relationship with those it regulates and some people there do not know what...