SEC needs to add 800 jobs due to reform law

By Annalyn Censky, staff reporter


NEW YORK (CNNMoney.com) -- The Securities and Exchange Commission will need to hire about 800 new people to carry out the Wall Street reform legislation, the head of the regulatory agency plans to tell lawmakers.

SEC Chairwoman Mary Schapiro will testify before a House Financial Services subcommittee Tuesday, discussing oversight of the agency and future challenges under the financial reform act President Obama plans to sign into law this week. Her prepared remarks were posted online by the subcommittee.

Because the SEC is charged with regulating financial markets, its growth is key to enforcing and carrying out many of the new rules in the sweeping reform bill legislators passed last week. The 800 people would be hired "over time," Schapiro said in her prepared remarks.

The new law creates five new offices within the agency. It also requires the SEC to flesh out the specific details of new regulations and conduct multiple studies, many within a one-year time period.

Schapiro plans to tell lawmakers that the rulemaking tasks alone will prove both "logistically challenging and extremely labor intensive."

But despite the challenges and the unknown costs of the agency's looming changes, the SEC is "properly positioned" to implement the plan, Schapiro's prepared remarks say.

She will also make a push for more funds for the agency, pointing to the SEC's struggle in recent years to keep up with the times due to staff and budget constraints.

"While the markets were growing exponentially in size and complexity during the last several years, the SEC's workforce actually decreased and its technology fell further behind," she plans to say.

Even before the Dodd-Frank reform bill was passed by the Senate last week, President Obama was requesting $1.3 billion for the SEC in the next fiscal year, which starts in October.

That's a 12% increase over this year's budget, and a boost in funds that would enable the agency to add about 374 positions.

In her prepared remarks, Schapiro will also highlight the agency's ongoing investigation of the May 6 "flash crash" and recent settlement with Goldman Sachs.

Last week, Goldman Sachs agreed to pay $550 million to settle charges of defrauding investors in a sale of securities tied to subprime mortgages. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,042.90 -28.32 -0.17%
Nasdaq 4,493.39 -12.46 -0.28%
S&P 500 1,972.29 -5.51 -0.28%
Treasuries 2.51 0.02 0.68%
Data as of 12:17am ET
Company Price Change % Change
Ford Motor Co 14.79 -0.32 -2.12%
Bank of America Corp... 17.05 0.04 0.24%
eBay Inc 56.63 3.97 7.54%
Apple Inc 100.75 0.64 0.64%
General Electric Co 25.62 0.20 0.79%
Data as of Sep 30

Sections

CNNMoney's Italian-American investing correspondents did a taste test of Olive Garden's food. They agree with hedge fund Starboard: It's not very appetizing. More

Even limited air operations could cost up to $4 billion a year, says a think tank, while large ground forces could cost $1.8 billion a month. More

Pro-democracy protesters in Hong Kong are using FireChat to improve communication and organize. More

On Wednesday, 17% of First Green Bank's 66 employees will get a raise under the company's new "living wage" program. The guarantee: At least about $30,000 a year. More

This mom of four only makes $29,000 a year and is losing $400 a month because the state is garnishing her paycheck over a debt. Now she is about to be evicted from her apartment. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.