The White House has proposed that the Securities and Exchange Commission should get a 28% budget increase for fiscal year 2012 to $1.4 billion.
Lots of Wall Street sycophants have criticized this number, including members of the House of Representatives — they want to slash the proposed SEC budget by nearly 30%.
Last moth, Halah Touryalai put the $1.4 SEC billion budget into context, comparing it versus the following Wall Street spendings:
1. Bank of America spent over $2 billion on marketing in 2010.
2. JPMorgan’s litigation reserves: $4 billion (Q3 2010)
3. Goldman Sachs Q4 2010 compensation and benefits: $2.3 billion
4. Note that Goldman Sach’s $550million fine last year was about HALF of the SEC’s proposed budget.
5. JPM spent $1.2 billion in Q4 2010 on technology, communications and equipment expenses.
6. As a reward for Bank of America’s purchase of Merrill Lynch’s rotting carcass, the government gave it a $20 billlion TARP loan.
7. Citi’s marketing and advertising cost the bank $1.6 billion in 2010.
8. The SEC now must regulate hedge funds, manage their registration, etc. In Q4 2010, the hedge fund industry added $149 billion in new assets.
9. AIG recieved loans, guarantees and bailouts worth $185 billion dollars.
10. Cheers! Americans spent $4.7 billion on beer, wine and liquor in the month of December 2010.
As we have noted many times in the past, the SEC has been kept defective as a matter of policy.
SEC: Defective by Design? (March 2010)
10 Wall Street Expenses That Make The SEC’s Budget Look Pathetic
Forbes Feb. 17 2011
SEC budget puts it in league with Goldman’s marketing dept.
Crains February 14, 2011