The SEC isn't understaffed. They just recruit the wrong type of people. They have too many lawyers and not enough fraud examiners. Case in point, a friend of mine from college (an exceptionally bright guy) interviewed for a position with the CFTC after he graduated. He graduated with a triple major (accounting, math, pre-law) and passed the CFE exam. They wouldn't hire him because he didn't have a juris doctorate. This wasn't for an attorney position, but simply an entry-level fraud examiner position. What do these fucking lawyers with their liberal arts undergrad degrees know about finance? Very little. They're trained to make sure that the paper work looks good.