Forbes' Intelligent Investing: It's Not Personal -- It's an Institutional Thing

May 28, 2009

Two SEC attorneys are being investigated for insider trading. But don't worry, it's not Mary Schapiro's fault.

By Bill Singer, Attorney and publisher of and

SINGER: Odd, isn't it, how our regulatory system is patrolled by career regulators who should know what's going on--after all, they've been on the job for years--but it's always the predecessor's fault? I'm not sure which inference is worse. For years, career regulators were aware of deep-seated, systemic problems but failed to do anything about these shortcomings.

Or those same folks lacked the competence to uncover the problems and permitted them to persist. Truly, this shouldn't be a conversation about the failure of prior SEC chairs Cox, Donaldson, Pitt or Levitt. We need to frame this issue for what it is: the failure of the SEC as an institution.