“In the latest example of the dominance of financial services interests in Washington, a committee set up by the Securities and Exchange Commission supposedly to ensure that our equity markets serve the public interest includes representation by firms accused of the very kinds of wrongdoing such an effort should combat.
“In response to intense public pressure over the high-profile reports that the equity markets were “rigged” and ripping off investors, the SEC created the Equity Market Structure Advisory Committee earlier this year, claiming it was a way to bring together experts to examine our equity markets and the extent to which they’re functioning effectively for the American people. For years, there have been many concerns about significant defects in the equity markets, including issues like dysfunctional market structure and predatory high-frequency trading. Such trading has been linked to “flash crashes,” where the market plunges and recovers trillions of dollars in a matter of minutes. The SEC claimed that it was finally going to bring together people dedicated to finding solutions that serve the public interest, not the industry status quo. At least, that’s what was supposed to happen. But, unfortunately the committee was stacked with industry insiders.”
Read the full American Banker op-ed by Dennis Kelleher here.