Exclusive outtakes from industry leaders
Ann Saphir takes a look at Senator Jack Reed’s comments on cars and trading.
With traders buying and selling at dizzying speeds these days, underfunded U.S. regulators can’t hope to keep up unless they get more funding, better resources, and faster technology — think cars, Democratic Senator Jack Reed says.
Reed, who drives a 1991 Ford Escort, says he loves his car for city driving.
But if he had to take on a race car, he’d need to upgrade – and the same goes for the Securities and Exchange Commission and the Commodity Futures Trading Commission, which are stuck using outdated technology even as their policing obligations pile up after Dodd-Frank financial reform.
House Republicans have moved to block funding increases for the regulators, saying they don’t want to add to the federal deficit.
But according to Sebastian Dovey, managing partner of wealth management consultancy Scorpio Partnership, they need to spend less time moaning about it and more time working with regulators to communicate the benefits of the industry.
“It’s not good enough to sit back and say this is going to cost us,” he says. “We’re here now, we’re in this mess. We’ve got to try and manage our way out of it.