http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1333717 Surprise surprise! "This paper next explores two hypotheses that could explain a systematic bias in enforcement patterns: that constraints in bureaucratic resources weaken the SECâs negotiating position towards big firms, and that SEC officials favor prospective employers."
If any guy at SEC was smart at all, he would realize that if there was a big corruption/fraud case that he could really clean out (CDOs?), he would make plenty when he left the SEC and wouldn't need a Wall St "employer" after it at all by writing a book about it and doing the lecture circuit.
Regarding "resources" I thought the SEC would like to be funded based on market capitalization of companies. Nice way to raise taxes. This should solve budget problems. Harry Markopolous didn't do it for the money. (Exposing Madoff). The GS fraud testtifying before Congress looks more and more like "sumbody do sumpin". Congress is going to propose regulation before the facts are in.