SEC: Budget Too Tight To Function Hot

Schapiro recently told reporters that all hiring at the SEC is frozen and that even "desperately needed" new recruits brought on to help tackle specific problem areas have been pushed back until there's room in the budget to afford them. 

As the SEC works to reshape modern securities trading in the wake of the flash crash while racing to meet deadlines imposed by the financial reform act, Congress is gearing up to reject the White House's request to free up hundreds of millions of dollars in new funding for the commission and other regulators.

With more work and at best a flat amount of resources, the SEC may face the difficult decision of cutting corners -- which nobody wants -- or offloading some of its responsibilities. If the latter, expect more talk about handing oversight of RIAs to FINRA in the new year.

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