A congressional impasse over federal spending for the current fiscal year will hamper the SEC's efforts to implement Dodd-Frank Act rules governing areas including hedge fund registration and derivatives, SEC Chairman Mary Schapiro said Friday.
“We're stretched incredibly thin,” Ms Schapiro said in remarks at the Society of American Business Editors and Writers conference in Dallas. “We can get the rules written, but what we're not going to be able to do is operationalize them.”
Funding for the SEC and the CFTC, which got expanded authority under the regulatory overhaul enacted last year, has been caught in a congressional battle between Republicans aiming to slash spending and Democrats looking to pay for new oversight. House Republicans are pushing to roll back federal spending to 2008 levels.
The SEC is one of the few financial regulators that would be shut down if lawmakers fail to reach agreement on a short-term spending measure by Friday night. Unlike the PBGC, FDIC and the Federal Reserve, which are funded through industry assessments, the SEC relies on congressional appropriations for its budget.
“Tomorrow, unlike almost every other financial regulator, we may be shut down,” Ms. Schapiro said on Friday.