The Securities and Exchange Commission was severely constrained under President George W. Bush, who blamed slow economic growth on “SEC overreach”. The SEC has now lost its Cinderella status – but its new chairman, Mary Schapiro, must avoid giving credence to Mr Bush’s misconceived complaint.

Since the change of the guard at the White House, the SEC has locked horns with corporate giants, such as Bank of America, forced to settle a claim that it misled investors, and General Electric, humiliated by an SEC probe into its accounting practices.