January 26, 2009 at 07:00 PM
Securities and Exchange Commission Chair Mary Schapiro suggested tougher capital requirements for broker/dealers on Friday in a written response to questions from Michigan Democratic Sen. Carl Levin.
“I believe we need to strengthen capital requirements across the board,” Schapiro said in the response.
According to Reuters, Schapiro said she believes additional oversight capability is essential for her agency. Among other financial industry oversight suggestions in her response to Levin’s questions, Schapiro reiterated her views that loosely regulated financial products like credit default swaps and hedge funds need oversight, and she repeated her view that stronger regulation is needed for credit rating agencies, which have been accused of contributing to the financial crisis by assigning top ratings to securities that later crumbled. Schapiro said it was appropriate to allow shareholders to cast an advisory vote on executives’ compensation.
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