As I argued in this column last month, the Securities and Exchange Commission budget has been well below where it should be for several years. This shortfall has caused the SEC to suffer a 10 percent reduction in staff and a cut of more than 50 percent in its new technology investments since 2005, a period during which the securities markets it regulates have continued to see explosive growth. Most recently, of course, the agency has had to operate in this weakened state in the pressure-cooker of the current economic crisis.
