A study of thousands of government records shows a pervasive culture at the Securities and Exchange Commission (SEC), the government’s top financial regulatory agency, of former SEC employees leaving the agency to go work at major banks. Former SEC employees have helped major firms secure exceptions from federal law, fight allegations of wrongdoing, and soften the blow of enforcement actions.
“The revolving door between the SEC and the firms it oversees is so pervasive that it threatens the integrity of our regulatory system,” said Michael Smallberg, the author of POGO’s new report.
“Fifty-three separate programs run by four federal agencies provide economic development assistance to entrepreneurs and several of the programs provide the same type of assistance. There are 17 programs providing “technical assistance” to entrepreneurs: Two at the Department of Housing and Urban Development, six run by the Small Business Administration, five run by the Agriculture Department and four out of the Commerce Department.”
As the government increased spending on federal contractors from $200 billion to $500 billion a year, the Project On Government Oversight began looking at how that money was spent. Recently we release our Bad Business report that debunks the myth that contractors are cheaper than federal employees. In this video, POGO’s Scott Amey gives some background on the rise of federal contractors and how POGO came to do the Bad Business report.