Mr. Bricker's observations raise a question as to whether "earlier recognition" of losses may bring the SEC into conflict with the banking regulators, who may have their own views as to when a loss should be recognized.

This is a broad and well-reasoned set of criticisms and recommendations. They come from inside a major regulatory agency, even if from the minority party at the agency. Commissioner Giancarlo's perspective deserves both acknowledgment and response.

One reason this critique is so powerful is that it stands in stark contrast to recent speeches by other regulators that seem more enthusiastic about giving themselves kudos than they do in engaging in self-criticism. For example, here…

From a political standpoint, a big question remains: will municipal issuers and their employees and elected officials be held to the same standards of liability as private entities and their employees?

The SEC seems to have taken a real interest in both requiring improved disclosure by municipal entities and in bringing enforcement actions when disclosures or statements by municipal entities contain material misstatements or omissions. At some point, sooner or later, the politics of this will come to a head, posing the question: will municipal entities be subject to the same disclosure requirements that apply to private entities?