Financial markets are facing immense risks because of a lack of funds. Talking about the situation, Chairman of the Securities and Exchange Commission, Mary L. Schapiro, said that the absence of money was having a negative effect on the ability of the body to keep a check on financial markets.

The budget freeze is mounting a lot of pressure on the commission, especially as, following the economic crisis, SEC has come under mounting pressure to improve the policing of financial markets. The statement by Schapiro came while she was addressing employees, securities lawyers, agency employees and others.

In a strongly worded speech, Schapiro said that it was upon everyone belonging to SEC and America to ask whether it was right to give SEC analysts’ outdated machines to keep a track of trades that were carried out within a span of microseconds. She further raised the question, if it would be wise to shut down digital forensic labs under SEC, which is used in carrying out investigations regarding data that is stored in iPhones and pen drives.

It needs to be pointed out that SEC has come under immense criticism regarding the Bernard Madoff fraud. Detractors have said that the organization was responsible for the turn off. Though, Schapiro, who was appointed by the President following the economic crisis said that the commission was in no position to keep a check on every fraud that is being committed and that it was only now that SEC had been able to reach levels prior to the economic downturn.