Investment Bank Oversight Program Ending, SEC Says

Investment Bank Oversight Program Ending, SEC Says

WASHINGTON (Reuters) - The U.S. Securities and Exchange Commission is ending its program to supervise large independent investment banks now that the five participants have collapsed or reorganized.

The announcement Friday coincided with criticism by the SEC's inspector general of the agency for failing to properly supervise broker dealer risk assessments in a program run by the Division of Trading and Markets.

"TM's (trading and markets) failure to carry out the purpose and goals of the Broker-Dealer Risk Assessment program hinders the Commission's ability to foresee or respond to weaknesses in the financial markets," said the inspector general's report.

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