Rep. Randy Neugebauer, R-Texas, responded Friday to an SEC Inspector General report by saying an incident involving SEC staffers that left “unprotected” potentially sensitive market and business information “shows a frightening lapse of judgment by the SEC.”
Neugebauer (left), chairman of the House Financial Services Committee’s Subcommittee on Oversight and Investigations, voiced disappointment on Friday over details found in an SEC Inspector General report that computer security breaches had occurred in the agency’s Division of Trading and Markets.
A Democratic Senate Banking Committee aide told AdvisorOne that “the Committee has begun its bipartisan due diligence, including a briefing with the SEC and the Interim Inspector General, and will continue to examine the situation.”
Neugebauer was responding to a report by the SEC’s Office of Inspector General recounting an investigation that began in January 2011 over alleged mismanagement of a computer security lab in the Division of Trading and Markets Automation Review Policy (ARP) program. The ARP lab, as it is known, is used to support the Division of Trading and Markets’ Office of Market Continuity inspection program. That inspection program, known as the ARP program, inspects self-regulatory organizations, stock exchanges and clearing agency computer networks, the report states.