Godot Is Still Waiting . . .
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Last month, the Securities and Exchange Commission announced that it was proposing
a new rule under the Exchange Act. In an accompanying
“fact sheet“, the SEC said
that it was doing so “to increase transparency and efficiency
in the opaque securities lending market by requiring any person
that loans a security on behalf of itself or another person to
report certain material terms of those loans and related
information regarding the securities the person has on loan and
available to loan to a registered national securities association
(RNSA), such as the Financial Industry Regulatory
The SEC’s announcement reminded me of an inquiry that I
first made over nine years ago. It seems that
California’s behemoth pension fund, CalPERS, makes money
through securities lending transactions. Government Code
Section 7603 requires that the form of agreement be approved by the
Commissioner of Business Oversight (now known as the Commissioner
of Financial Protection & Innovation). For years, I have
sought in vain to obtain evidence that CalPERS has obtained the
requisite approval. Recently, I submitted another Public
Records Act requesting a copy of the approval required by Section
7603 and received the following response:
After a diligent search of our records staff determined that
there are no documents responsive to your request. Therefore we
have nothing to produce in response to your request.
Like Vladimer and Estragon, I continue to wait.
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