While it may not be on the level of the historic protests
in the Middle East or the budget battle playing out in Wisconsin, the funding
"war" being waged against the Securities and Exchange Commission (SEC) and
Commodity Futures Trading Commission (CFTC) in the Republican-controlled House
of Representatives is worth noting if you are involved in the corporate
governance function of your company.
If anything, the future of the more than $1 billion in
federal funds is vulnerable as the new House has vowed to cut billions in
government spending, including money that would be used to implement major
parts of the Dodd-Frank Act. A bigger question for public companies is what the
possible de-funding of some of the SEC programs, such as the whistleblower
office and bounty, could mean to corporate governance regulation in the near
Granted, the SEC and CFTC, which oversees the derivatives
industry, aren't the only federal agencies facing the budget ax. But for the
first time in recent memory, such regulators are getting support from
non-political groups: institutional investors. In the past couple of weeks,
both sides have made their pitches. It's a battle pitting the Republican-led
House and business organizations such as the Business Roundtable and U.S.
Chamber of Commerce against the Democratic President and the Council of
Institutional Investors (CII) and ShareOwners.org.
Read the rest of this article on the Corporate Governance
Blog, a blog by Gary Larkin
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