November 4, 2009

WASHINGTON - Statement of Congressman Spencer Bachus, the top Republican on the Financial Services Committee, regarding the passage of the Democrats' so-called Investor Protection Act of 2009:

"Although there are a number of positive reforms in the bill, including provisions to exempt small companies from Section 404 of Sarbanes-Oxley, these reforms are overshadowed by the bill's failure to fundamentally reform the SEC.

"The financial crisis demonstrated the need to reform the SEC in order to address the systemic failures at the agency.  Unfortunately, dramatically increasing the SEC's taxing authority without fixing the agency's outdated, ineffective, and siloed structure, will still leave investors without the protections they deserve.

"In addition, the Committee adopted an amendment by Rep. Maxine Waters (D-CA) that undermines 150 years of corporate governance that serves our capital markets and economy well. The amendment will inject the SEC into regulating and overseeing corporate board elections at all public companies, taking the SEC away from its core mission of protecting investors."