So the SEC voted 3-2 in favor of restricting short-selling today, at the risk of pissing off Goldman Sachs, whose head of US equity trading Paul Russo had been lobbying against the proposal for some time. However, even Mary Schapiro knows that no one can truly make a full frontal attack on GS, and mitigated the rule to take into consideration Russo's advice, deemed to be the "least harmful": trigger a circuit breaker any time a stock has dropped 10% in one day.
So now, everyone's pissed, 'cause it's too-far-not-far-enough. Way to go Mary! But enough with the short-selling rules. What is Mary S. really doing to avoid another Madoff debacle? "Attacking it from multiple perspectives," but mostly, relying on the thousands of tips the SEC receives, cause you know, that worked pretty well in the past. Also, asked if the SEC has the staff and budget to protect investors, Mary says, absolutely not. So feel safe people.