TheCorporateCounsel.net

Although SEC Chair Schapiro issued this statement on Thursday saying that a 13% budget increase would help the SEC, I couldn’t help but think that the SEC wanted more, particularly after years of flat budgets under Chairman Cox’s tenure (see my rant on this topic last year). Unfortunately, 13% just catches the SEC up to where it should be under normal circumstances – it doesn’t reshape the SEC as it needs to be.

Certainly, a much greater increase seems warranted given the crazed circumstances of the financial markets – and the need for the government to help re-establish trust between investors and Wall Street. A strong cop on the beat is a “must” right now and I don’t think 13% can do it, as the Staff needs some reorganization, including hiring folks with expertise in the areas that failed us (eg. derivatives) – as well as a much larger Enforcement Division. Ten cent thoughts are cheap…what are yours?

Warren Buffett’s Annual Letter to Shareholders

We now have the always fascinating annual shareholders’ letter from Warren Buffett. Among other topics, he waxes about the free-fall in the economy and the human condition. Here is a NY Times article about the letter (and even better analysis from the “D&O Diary”) – and here is Mad Money’s Jim Cramer taking Warren to task for urging Americans to buy stock at the same time that Warren was selling American…

Auditor Inspections: EU Commissioner Threatens US Regulators

As noted in this recent statement, EU Commissioner Charlie McCreevy infers that unless the US accepts the EU inspection process – which has not been proven effective or independent – they will not work with the PCAOB. It appears to be a shot across the bow of new SEC Chair Schapiro who just said in this recent speech that she is once again dedicating the SEC to protecting investors. McCreevy worked at one of the Big 4 firms some time ago and has a term that expires this summer.

My Recent Obama Experience

One of the beauties of living in DC. My son and I were at the Washington Wizards’ basketball game on Friday night, with President Obama in attendance – and sitting in the crowd. He was accessible by anyone and he did a lot hand-shaking. No real security in sight, even though I’m sure they were there. Below is my video when he first emerged from a tunnel – he’s not visible due to a gaggle of a hundred reporters, but you get a sense of the excitement (and here is a video from a real news organization):

– Broc Romanek