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Obama gift-wraps the SEC

If you pay attention to the upcoming Senate Banking Committee confirmation hearings for President Obama's nominee to head the Securities and Exchange Commission, Mary Jo White, you probably will not hear the term "regulatory capture" (aka the catch-all term for industries controlling the parts of government that are supposed to be independently regulating them). Yes, it's certainly possible that Massachusetts Sen. Elizabeth Warren will echo her previous criticism of the phenomenon (as she absolutely should), but by and large, the concept probably will not take center stage, even though White is the personification of that problem (more on that in a moment). That's because with so many committee lawmakers on bankrolled by major financial institutions, the committee itself has become a shining example of how regulatory capture works.

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