WASHINGTON (Reuters) - The Securities and Exchange Commission lacks expertise to police all parts of the $3.7 trillion U.S. municipal bond market, its director of enforcement told a Senate panel on Wednesday.
"The Enforcement program continues to face challenges in securing the necessary expertise, human capital and technology resources to fulfill our mission of investor protection," said SEC Enforcement Director Robert Khuzami, as he discussed "a broader array of challenges stemming from the fast-paced change and increasing complexity apparent in the financial products, markets, transactions, and practices."
"In the municipal securities markets, we need better understanding of pension liability disclosures, valuation issues, and tax-arbitrage activities," he added.
It has been more than a year since the Commission settled charges with New Jersey that the state misrepresented its pension liabilities to its bond buyers. Since then, state and local governments have
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