Oct 24th, 2002
This is fun to remember while "small gov't" Larry Kudlow is taking the SEC to task over the Madoff fraud.
From Senator Patrick Leahy
Those of us present at the White House when the Act was signed heard the President commend Congress for passing “a strong set of reforms.” As the President noted that day, such new laws are little help without “new funding for investigators and technology at the Securities and Exchange Commission to uncover wrongdoing.” The Sarbanes-Oxley Act anticipated the added resources needed to implement the Act, authorizing a 77 percent increase in SEC funding to $776 million. Of the tools provided in the new law, the President vowed to “use them to the fullest.”
Since that signing ceremony, however, the Administration has systematically acted to weaken the same provisions of the Sarbanes-Oxley Act that the President signed with such fanfare. Just hours after the bill signing, the White House issued “interpretive” statements that would weaken the Act’s corporate whistleblower provisions, which Senator Grassley and I authored, despite the plain statutory language and legislative intent of those provisions. Senator Grassley and I wrote twice to the President seeking an explanation of the Administration’s actions regarding the whistleblower protections of corporate employees in the Act. We have yet to receive a complete response to our letters.
Then the Department of Justice issued “guidance” to the FBI agents and prosecutors charged with enforcing the law that also appeared to include either narrow or incomplete interpretations of the new laws provided in the Act. I wrote to the Attorney General expressing my concern about those issues and the Department has still not, to my knowledge, issued new guidance providing prosecutors with a better and more complete interpretation of these new laws.
The whole letter...
When I googled the phrase "cuts SEC budget" I got four relevant hits among the first 40.
From the NY Times, in 2002.
A quicky from the Big Picture, in 2003.
And the Big Picture again in 2005.
And the The Times again from 1993