SEC and Accountability

Paper Summary:

In this article, the writer discusses that education and enforcement in the markets are the two primary global roles of the U.S. Securities Exchange Commission's (SEC) at the national level. The writer notes that a key vision of the SEC is to set the highest standards and be a model to other federal agencies. This vision is complemented with the pristine mission to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. Working with numerous agencies the SEC has numerous roles that are discussed below emphasizing the importance of an effective and efficient regulator of the securities markets. This paper shows the SEC has adapted to market changes throughout the years. The writer concludes that market legislation is constantly evolving and only the SEC has the ability as the primary federal securities regulator to find the right balances in the U.S. economy to produce wealth and prosperity through investor confidence.

Outline:
Introduction
Priorities
How the SEC Was Created
The Four Divisions of the SEC
Agencies that Work with the SEC
Evolving Laws of the SEC
ENRON
Conclusion

From the Paper:

"An utmost priority of the SEC is to maintain the integrity of the U.S. markets. Investors simply will not participate in an economy that allows fraud and corruption to prevail. Average citizens rely on investments for children's education, retirement and general savings necessities. A leading example is set by the SEC as the primary regulator of the U.S. securities markets. Creating common laws, regulations and procedures are vital roles.
"Trickle-down economics, a term used during the Reagan-Bush era coincided with deregulation and created havoc in the markets. Many businesses prospered however, regulatory bodies became ineffective due to the government's deregulating motives. Fraud, corruption, bankruptcies and other criminal acts forced the government to reconsider deregulation and give the SEC more strength. Regulation, deregulation, rules, laws and other principles are created, developed and modified by the SEC to protect the markets."

Sample of Sources Used:

• Benston, G. (2003). Following the money: Corporate disclosure in an age of globalization. Washington, DC: Brookings Institution Press.
• Financial Wire. (May, 2006). SEC says implementation of new accounting rules need change. Forest Hills: Retrieved December 9, 2006 from ProQuest Business Journals database.
• Ellis, L. & Walsh, A. (2000). Criminology. A global perspective. Needham Heights, MA: Allyn and Bacon.
• Goodman, M. (2005). Restoring trust in American business: the struggle to change perception. [Electronic Version] The Journal of Business Strategy. Boston: Retrieved December 9, 2006 from ProQuest Business Journals database.
• Hal, S. (2005). Capital adequacy beyond Basel: Banking, securities, and insurance.Cary, NC: Oxford University Press.

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