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Roundup: SEC Goes After Little Guys

Matt Taibbi from the Rolling Stone looked at why the SEC seems to love crushing little guys but let’s huge megabanks do whatever they want [3].

It’s half sad and half pathetic. My belief, whether accurate or not, is that government agencies are filled with three types of people – those who can’t get a job in private industry, those who don’t want to get a job in private industry, and those who are simply waiting until they can get a job in private industry. So for the SEC, an example private industry job would be on Wall Street. The ones at a regulatory agency who can’t get a job or don’t want to get a job, either can’t or don’t have the motivation to battle the people who they are supposed to regulate. The ones who are waiting until they can get a job don’t have an incentive to fight with their future employers!

They all work towards their incentives though and, as Taibbi has shown, the incentives are all jacked up.

Have a great weekend!