The Securities and Exchange Commission's supervision of Wall Street ﬁnancial ﬁrms is a possible example of
regulatory capture.

Question

Quizplus · Accepted Answer

Regulatory capture occurs when regulatory agencies are influenced by the industries they regulate, leading to a situation where the industry's interests are prioritized over public interests. The SEC's supervision of Wall Street financial firms has faced criticism for being too lenient and cozy with the industry, suggesting possible regulatory capture.

The Securities and Exchange Commission's Supervision of Wall Street ﬁNancial