|Copyright:||(c) 2011 The New York Times Company|
|Source:||New York Times Digital|
This is not exactly what
As the federal government moved closer to shutting down on Friday morning, the financial industry was bracing for the impact.
Top financial regulators like the
The agency would keep a skeletal staff “to respond to emergency situations involving the safety of human life or the protection of property,” according to the S.E.C.’s Web site.
E-mail and BlackBerrys will not be shut down, although furloughed C.F.T.C. employees “may not check e-mail or use voice capabilities or conduct any work,” according to the agency.
The agencies would continue to oversee the markets, albeit in a diminished capacity. The online database
But that’s about it.
The S.E.C. would halt such activities as processing regulatory filings, providing advice to publicly-traded firms and approving new financial products. “As a result, new or pending registration statements or applications for exemptive relief will not be processed regardless of the status of any review of those filings,” the agency said.
This could delay investment advisory applications from getting approved, keep banks from issuing securities and prevent firms from getting guidance on mergers and other regulatory matters.
And let’s not forget about the hundreds of
Banks also rely on the government to keep mortgage business flowing.
That said, a government shutdown is not all bad news for
And both the S.E.C. and the C.F.T.C. will effectively halt their implementation of more than 100 new rules facing the industry as part of the Dodd-Frank Act.
In the event of a shutdown, the S.E.C. would cut its enforcement staff from around 1,000 employees to 178. If the S.E.C. feels it needs to immediately file charges against a firm to avoid damage to life or property, it can do so.
“Insufficient funding for the S.E.C. means an investor protection effort hobbled at a time when the events of the last decade have proved that effective enforcement of the securities laws is more important than ever,” Ms. Schapiro said in a speech on Friday to the
A few regulators will still be up and running.