Regulatory Challenges in the Securities Industry

An edited version of Dr. Robert Glauber's address to the FMA Annual Meeting Luncheon is presented. The 90s-era corporate governance debacles at Enron, WorldCom, and elsewhere coincided, more or less, with a spate of scandals and misdeeds in the securities industry that hurt investors most of which came to light after the market bubble popped in 2000. All this misbehavior put the regulators on red alert, and we're likely to stay there for some time. Even so, now that the smoke has cleared somewhat, this is a good time to step back and survey the field. A quick primer on the NASD is and what it does is presented.