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Meet Your New Regulator

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Stinging from a rebuke that the rest of us will not soon forget, the SEC is seeking to demonstrate value once again. What better way to accomplish this than by lifting tried and true methods from the local PTA? A little polish, some duct tape, the application of a Dremel tool and poof! Meet Your Regulator:

Leading the charge is SEC assistant regional director Bruce Karpati, who heads the agency's Hedge Fund Working Group.
"We need to be policing even the most complex markets to ensure that all investors, regardless of their supposed-sophistication, have a fair shake," Mr. Karpati said. "We have to be every bit as sophisticated."
It's somewhat an about-face for the SEC, whose former chairman, Christopher Cox, said in a 2006 congressional hearing that "neither the SEC nor any regulator has authority over the CDS market." The SEC has always maintained it has authority to enforce fraud involving derivatives.
Mr. Karpati, a 39-year-old native of Buffalo, N.Y., and SEC staff member since 2000, led the SEC's 2003 civil insider-trading case against homemaking magnate Martha Stewart. The case alleged Ms. Stewart sold ImClone Systems Inc. stock in 2001 based on inside information that ImClone's cancer drug wouldn't be approved by the Food and Drug Administration. Ms. Stewart served jail time for lying to federal prosecutors, and settled in 2006 with the SEC.

Celebrity jail time for lying! Outstanding! A leap forward for regulator customer service. Smiles all around, particularly, as you see, on Mr. Karpati. Good Job! We are here for your protection, remember. Next week: Big regulators come in small packages.
As SEC Steps Up Vigilance, It's Policing Some New Beats [The Wall Street Journal]