While Bear Stearns was unraveling, it became increasingly obvious the Securities and Exchange Commission had limited weapons to help curb the crisis. "They don't have a whole lot of tools available to them, like the Fed does," said Larry Bergmann, a special counsel at Willkie Farr & Gallagher LLP. "Their main concern is that the capital of the firm is there so that if the firm has to liquidate the customers are taken care of." The result will likely include continued debate over the regulation of the U.S. financial markets.
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