Wall Street cop’s shameful scheme: Inside an infuriating bureaucratic turf war

[unhappycamper]

http://www.salon.com/2014/05/29/shame_befalls_wall_street_cop_inside_an_infuriating_bureaucratic_turf_war/



Asset managers could face a just-created super-regulator. Here's why Mary Jo White's SEC is fighting it all the way

Wall Street cop’s shameful scheme: Inside an infuriating bureaucratic turf war
David Dayen
Thursday, May 29, 2014 3:43 PM UTC

The Securities and Exchange Commission has touched off a major bureaucratic scuffle with its fellow financial regulators by proposing to, in the words of one Democratic aide, “rip the heart out of Dodd-Frank.” The SEC, following the wishes of one of its Republican commissioners, has initiated a turf war over which agency gets to monitor a key corner of the financial system.

At issue are so-called asset managers, companies like BlackRock, Fidelity and Pimco, who manage investments on behalf of individuals and groups through mutual funds and other vehicles. Asset management firms collectively control an astonishing $53 trillion in investor funds.

Historically, the SEC has regulated asset managers. But under Dodd-Frank, the Financial Stability Oversight Council, a newly created super-regulator, can designate “systemically important financial institutions,” or SIFIs, and subject them to rules previously reserved for banks. An FSOC designation puts non-bank SIFIs under the supervision of the Federal Reserve, subjecting them to tougher standards, like having to carry more capital to cover against losses. This makes sense, because non-banks like AIG were major contributors to the crisis.

Two asset managers – BlackRock, which manages $3.8 trillion in funds, and Fidelity, which manages $1.9 trillion – came under official FSOC review last November, and the SEC has fought it virtually all the way.

[Demeter]

1. You're really racking up the scoops there, UC

Impressive! or a massive attack of insomnia....

[unhappycamper]

2. Nope.

I CAN SEE AGAIN!!!1! (kinda) My left eye is like watching everything in HD; my right eye (formerly known as the good one) is like watching everything on a 17" B&W TV with rabbit ears.

[Demeter]

3. Cataract surgery?

[unhappycamper]

4. Yup - from the Veterans forum:

http://www.democraticunderground.com/11795417

I have another appointment at the VA on 6.23.2014. I have my fingers crossed we will schedule the other eye late June / early July.

[Demeter]

5. Modern medicine, used appropriately, is a miracle, indeed. Congrats and best wishes!