Bourbon,

What do you think about that issue? My understanding is that the SEC doesn't pay enough to compete. But doing time at the SEC is a good stepping stone to the regulated companies because the regulated entities like having someone familiar with decision making within the regulatory agency or (depending on how cynical you are) they like having someone who can network with the regulatory agency to influence decisions. The regulator worker bees thus like to start out at the lower-paying SEC with the intent of moving on to the regulated entities. Thus, the revolving-door.

The problem from my fairly uninformed perspective is that if the SEC et al are going to compete with the private sector then the expenses of the SEC et al are going to balloon quickly and the pendulum is going to swing too far away from regulatory coziness/capture toward regulated entities and regulatory agencies wholly unfamiliar with one another.

What do you think of the idea that has been floated of - to put it simplistically - permitting people to trade on insider information? Rather than continuing with this regulatory framework that seeks to root out insiders (often unsuccessfully), why not amend the securities laws/rules to exploit the new speed with which information flows by permitting insider trading and let the more perfect information be priced into assets? It seems like it would help to reign in costs and free up cash to pay more competitive wages to the fewer regulators who would remain.

Thoughts?