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

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Regulatory capture occurs when a regulatory agency, created to act in the public interest, instead advances the commercial or political concerns of the industry it is charged with regulating. The SEC's supervision of Wall Street firms can be seen as a possible example due to the close relationships and revolving door between the agency's employees and the financial industry, potentially leading to decisions that favor the industry over the public interest.

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