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SEC’s Cox: Regulatory Gaps Worsened Subprime Crisis 

May 23, 2008By

Gaps in the regulatory process and structure enabled much of the subprime mortgage crisis to grip financial markets with force in the back half of 2007, Securities and Exchange Commission chairman Christopher Cox said in an interview with the Financial Times on Friday. Saying that the SEC is parsing “regulatory lessons” from the market mess that has yet to resolve itself, Cox suggested that stronger oversight of underwriting and issuance standards would be needed going forward:

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