Christopher Cox, the chairman of the Securities and Exchange Commission and a longtime proponent of deregulation, acknowledged on Friday that the voluntary supervisory program of Wall Street’s largest investment banks had contributed to the global financial crisis and abruptly shut the program down.
The agency’s oversight responsibilities will largely shift to the Federal Reserve.
The commission’s inspector general, in a report also released on Friday, strongly criticized the agency’s performance in monitoring Bear Stearns before it collapsed in March. Mr. Cox said he agreed that the oversight program was ‘fundamentally flawed from the beginning.’
It's time to end the conservative experiment.