There is a worrisome element in the steady trend towards index investing. It means that financial investment decisions are largely made by following the trends rather than doing securities research. While the SEC has taken steps to lessen the burdens on the production of research, it should consider if there are ways it can actually go further to encourage (make profitable) the production of useful research.

Commissioner Atkins is right that subjecting large nonbanks to regulation as if they were banks makes not the least bit of sense as a regulatory measure. Banking regulation is intended to be applied to banks. Applying it to nonbanks is a nonsensical measure that was adopted by Congress, in haste, as part of Dodd-Frank without any consideration of how exactly this might work in practice.

Disbanding - or at least defanging - the FSOC entirely would be even better. Still, this proposal would be a substantial improvement over the FSOC's existing approach to identifying systemic risk and pursuing firm-specific designations. Given that the FSOC is inherently a political creature, acting in accordance with the party of the President, whichever party that happens to be, it is best if there are substantial barriers placed in the way of its exercising the rather awesome degree of…

Senator Warren's questions seem to suggest that only long-time government officials and academics are suitably innocent to advance the public interest. She might want to consider that practical, real-world experience may also provide substantial benefits and important perspective.