Interesting summary of the SEC’s record.

SEC: The record | ft.com

2001 Enron
The collapse of Enron exposed serious flaws in US regulation as authorities failed to notice that the company was concealing massive losses by using illegal off-balance sheet financing vehicles

2002 Sarbanes Oxley Act

Many critics see this as a regulatory overreaction. Much criticism directed at section 404 requiring companies to produce a time-consuming “internal control report”. Widely blamed for deterring foreign companies from doing business in the US

2006 Credit Rating Agency Reform Act

This act created a scheme for agencies to be treated as nationally recognised statistical ratings organisations to improve transparency and competition. This failed to eliminate conflicts of interest such as a compensation system where agencies were paid by the issuers whose securities they rate

2007 Subprime debacle The SEC has been blamed for failing to enforce proper disclosure procedures. The risk related to complex financial instruments surrounding subprime mortgages and securitisation was not effectively communicated to investors

2008 Bernard Madoff

SEC staff received credible and specific allegations but failed to recommend action