00:00Thank you very much, Mr. Chairman. Let me return to what there's been some discussion here. I am very concerned about the fact that we are reducing enforcement in many agencies, in yours and particularly in the IRS, where, in my opinion, enforcement is being devastated.
00:22We know, as human beings, that if we don't think there's a cop on the beat, we may go 55 miles an hour rather than 50 miles an hour. That's human nature. We all experience it.
00:34So I'm very concerned about the fact that the reductions in personnel at your agency prior to your beginning this iteration of your career there were pretty substantial.
00:51Most of the reductions were in your enforcement areas.
00:58Am I correct that since you left the first time when you said there were 3,600 folks there in the FTEs, and I forget how many, I think 2,000 on the contract side, very substantial increase in your workload?
01:16Well, so I should, you know, first of all, say that in our enforcement division, the headcount's down 15%, and that is not as high as, for example, in the general counsel's office or investment management or in trading and markets.
01:35So the enforcement division is at, you know, the average of the overall decrease in headcount.
01:42I'm going to ask you a question as you answer that. Were those DOGE-inspired or internally?
01:48In other words, did the SEC and or commissioners make that determination, or did DOGE implement those reductions?
01:57No, actually, the employees themselves made it because these are all voluntary retirements, and some people took the buyouts and whatnot.
02:05And a number of my friends, you know, that I've known for years were the ones who took some of these retirements, and obviously will miss their expertise and their participation.
02:17But, you know, they, some of them wanted to move away, some of them, you know, decided that now is the time to retire because they lived farther or whatever the decisions might be.
02:28So I think all that's good, but...
02:32Because our time is limited. Let me follow up on that question.
02:35So these were made by the employees themselves, not a management decision as to what was needed and what was not.
02:42Exactly. These are all voluntary...
02:44That concerns me because, of course, 2 million people were sent the opportunity to retire.
02:512 million, all of our people. Had they all walked off, government would have stopped.
02:55And the American people would have noticed it within 24 hours.
03:00So I'm very concerned about the fact that these opportunities were given, in my view, without a rationale, articulated at least, that I've been able to see,
03:13of why X, Y, and Z employees were no longer needed to accomplish the objectives Congress had set forth.
03:22Would that be an accurate observation?
03:24No, actually, I look at it another way.
03:26I mean, these are free people who are deciding that they want to retire, and that leaves room for...
03:33We have a lot of very competent people who are younger, and as they...
03:37This gives them room to grow, and so part of what I would like to accomplish is to help break down silos at the SEC
03:44because too often, young people come in full of vim and vigor, but then are kind of stopped in their progress as professionals to develop and to move around the agency.
03:56So I view this as a normal thing.
03:59There are 600 and some odd people who left out of...
04:02So that's the 15%.
04:04So I think, you know, we miss, obviously, their expertise, but I think that we have plenty of good expertise there at the commission, and I intend to tap into that.
04:15Okay.
04:16Let me go back to my question.
04:17Has your workload increased since you left?
04:21Well, so I don't know the precise answer to that, but we're getting the job done.
04:28The requests that I've been making to the staff have been answered with alacrity, and so I feel confident that we're able to handle it.
04:37And so, you know, I definitely...
04:40I share your concern to make sure that, you know, we fill the spots that are needed,
04:46but I think it's good to every once in a while have a house cleaning and to have a reorganization and to look at what's going on.
04:53My last nine seconds.
04:56Prior to rules, do you have to discuss them with either the secretary or the administration?
05:02Prior to...
05:03Prior to your issuing rules or enforcement actions or some actions,
05:08do you have to check with the secretary of the treasury or the White House?
05:12No, we file with OIRA, which is part of the Office of Management and Budget,
05:19and that's...
05:19SEC has done that in the past, and so that's part of the process.
05:25The chair now recognizes...
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