August 23, 2012
I am writing to express my disgust and frustration at the recent decision by the SEC governing board to postpone any action regarding further regulation of the mutual fund market. It is absolutely incomprehensible, after all the pain that has been caused by an unscrupulous financial sector, colluding rating agencies, and criminally negligent regulators, that we should arrive at this juncture, 4 years after the disaster, still unwilling to do things as obvious as requiring mutual funds to hold cash reserves to cover possible losses and to make participants in this market aware that it will always be possible to "break the buck." This kind of activity by ANY officers of the SEC reeks of exactly the kind of impropriety--strike that--corruption that characterized our financial sector before the Crisis, and apparently continues to do so.
I demand from the three board members who voted against further regulation a public explanation as to precisely why they have done so. "Further study" is a pathetic rationale for stalling in a world where so many citizens have been robbed by large institutions with clout in government circles, where corruption is virtually the order of the day, politicians being bought and sold by the likes of JP Morgan Chase and Bank of America. At one time, the standard for performance for civil servants included the notion of avoiding even the appearance of impropriety. We are now seeing just how far in the rear-view mirror that notion really is. That this decision is trumpeted as a "victory" for the large banks and financial institutions is only one more indicator of how open and brazen our government has become in its corrupt, bought-off state. At the age of 63, I find myself completely alienated from the government of my country, in no small measure due to outrageous actions like this.