The Securities and Exchange Commissions (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 SECs
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...