Thursday, June 19, 2008

Cristopher Cox's brave new world

Christopher Cox, chairman of the SEC, writes an op-ed piece in the WSJ, A brave new world for financial regulation, and QaAs on CNBC. He makes some pretty sensational comments as seen below.

on Regulation:
In real time we are working out new stress scenarios that are much tougher we are increasing standards for liquidity and for capital and we are working now, this is very important, very closely with the Federal Reserve.

There needs to be not a copy of the commercial model but at least an analog that has to be applied to IBs. ...IBs are trading firms they are not long term lenders. They need to be nimble and innovative. We lead the world in investment banking services, that's something we don't want to break.

on Cioffi's indictment:
There has probably never been a more obvious connection between alleged wrong-doing and market consequences.
M.B. asks: Are there more people involved? C.C.: Well, not in our complain.

on oil and energy:
Ability to asses proven reserves is an important piece. We want to make sure that we true up oil and gas accounting particularily with respect to reserves.

click for VIDEO

Is that what Cox is saying? (worst case scenario):

Light regulation for IBs
Two scape goat HF managers likely being found guilty
Prospect of significant downgrade in proven oil reserves (bummer!)

video: Regulating Wall Street
SEC Chairman Christopher Cox discusses the need for regulation on Wall Street and the role of his agency.

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