It is noteworthy that SEC Chair White links the SEC's "modernization" of the regulation of the asset management industry to systemic risk. The idea that the SEC should regulate the asset management industry to protect clients is obvious; likewise, that the SEC should regulate the industry to prevent any trading or investment misconduct of advisers from injuring third party market participants is obvious. That the SEC should be regulating investment advisers so as to limit systemic risk is…

Mr. Bricker's observations raise a question as to whether "earlier recognition" of losses may bring the SEC into conflict with the banking regulators, who may have their own views as to when a loss should be recognized.

This is a broad and well-reasoned set of criticisms and recommendations. They come from inside a major regulatory agency, even if from the minority party at the agency. Commissioner Giancarlo's perspective deserves both acknowledgment and response.

One reason this critique is so powerful is that it stands in stark contrast to recent speeches by other regulators that seem more enthusiastic about giving themselves kudos than they do in engaging in self-criticism. For example, here…

From a political standpoint, a big question remains: will municipal issuers and their employees and elected officials be held to the same standards of liability as private entities and their employees?