U.S. Congressman José E. Serrano ~ Representing the people of the 16th District of New York
3/11/2009
Serrano Chairs SEC Hearing on Financial Crisis
Today, Congressman Serrano chaired a hearing of his House Appropriations Financial Services Subcommittee that looked into the Securities and Exchange Commission’s actions relating to the financial crisis. The SEC, which is charged with protecting the public through enforcement of our securities laws, has in recent months been the target of criticism for failing to detect fraud cases and for providing insufficient oversight of investment banks. Recent events, including the Bernard Madoff case and over-extended investment banks have led to concerns from many members of Congress and the public.
The purpose of the hearing was two-fold. First, Congressman Serrano was interested in hearing more about the lessons the SEC learned from the experience leading up to and during this financial crisis. Secondly, the Congressman wanted to hear about the priorities of the new SEC Chairman Mary Schapiro at the Commission, particularly her plans to rebuild the Commission’s oversight, inspection, and enforcement capabilities.
Chairman Schapiro’s testimony spoke to these concerns and more, and Chairman Serrano pledged to do whatever he could to make sure the SEC has the resources it needs to effectively carry out its role in our economy.
"We live in difficult economic times," said Serrano. "Commercial banks are failing every week, unemployment is up sharply, and home foreclosures are mounting. Confidence in our credit rating agencies is sinking, and evidence of major securities fraud is growing. We need to restore the health of our financial system to put us on a path to economic recovery. To accomplish this, we need an SEC that is equipped to handle the regulatory challenges of the 21st century."