Declaring that over the past year “the consequences of poor market oversight became abundantly clear,” President Obama asked for a 13 percent boost in the Securities and Exchange Commission’s budget over what it was in 2008 as part of the overall national budget request he issued Thursday.  For the fiscal year ended September 30, 2008, the SEC’s total budgetary resources were $974 million.

“In 2010, the SEC will build its staff and technology resources and pursue a risk-based, efficient regulatory structure that will better detect fraud and strengthen markets,” according to the blueprint for the President’s budget plan.

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In response, Mary Schapiro, the new SEC chair, said the increased personnel and IT capability would enable the commission to “better detect fraud and ensure stronger oversight of the nation’s securities markets. We appreciate these additional resources that would help strengthen and reinvigorate the SEC and rededicate our commitment to the protection of investors.”

In another move aimed at bolstering oversight of the financial markets, the President asked for a 44 percent increase in the Commodity Futures Trading Commission’s budget over 2008 levels. The CFTC’s estimated budget appropriation for fiscal 2008 was $111,266,000.

The CFTC will implement new program responsibilities promulgated in the Farm Bill — filling gaps in regulatory oversight of energy and over-the-counter derivatives trading, as well as foreign exchange,” according to the budget blueprint.

 

 

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