Kenneth C. Greene,
Principal,
Law Office of Kenneth Charles Greene

No, we don’t mean this Monitor. Rather, this series of articles discusses the oversight of those key institutions responsible for the management and welfare of our finances, retirement, benefits, insurance, taxes and the like. We are compelled to trust government-run or backed institutions like the FDIC, SEC and IRS, but who safeguards our rights by overseeing and monitoring these venerable institutions? This article examines that issue and provides certain information, some of which you might already know.

The institutions I will address in this multipart series include:
1. Federal Deposit Insurance Corporation (FDIC)
2. Security and Exchange Commission (SEC)
3. Internal Revenue Service (IRS)
4. Food and Drug Administration (FDA)
5. U.S. Department of Housing and Urban Development (HUD)
6. Fannie Mae
7. Freddie Mac
8. Social Security Administration
9. Medicare
10. Department of Insurance
This article will focus on the FDC, SEC and IRS.

THE FDIC: PROTECTING DEPOSITORS SINCE 1933
The Federal Deposit Insurance Corporation (FDIC) was established on June 16, 1933, in response to the widespread bank failures of the Great Depression. Its primary role is to maintain public confidence in the banking system by insuring deposits and ensuring financial stability.

The FDIC operates under the leadership of a five-member Board of Directors (BOD), which includes a chair, a vice chair and an appointive director. The president of the United States appoints three of these board members with the consent of the Senate, and also designates one of them as chair and another as vice chair. Each appointed member serves a five-year term, ensuring continuity and regulatory oversight. Currently, Arthur J. Gruenberg, a Princeton graduate with extensive experience in banking and finance, serves as the FDIC chair. The agency continues to play a crucial role in monitoring and regulating banks to prevent another financial crisis.

THE SEC: REGULATING THE SECURITIES MARKETS
The Securities and Exchange Commission (SEC) was established in 1934 as an independent federal agency tasked with regulating the U.S. securities markets and protecting investors. Born out of the economic collapse following the 1929 stock market crash, the SEC enforces laws against market manipulation, promotes fair dealing, and mandates the disclosure of critical financial information.

The Commission is governed by five commissioners appointed by the president, with Senate approval. To ensure bipartisanship, no more than three commissioners can belong to the same political party. The president also selects one of the commissioners as the chair, the SEC’s chief executive. Currently, Gary Gensler holds this position, overseeing the commission’s enforcement actions, rulemaking and investor protection initiatives. Under past administrations, different priorities have shaped the SEC’s regulatory approach, with some chairs emphasizing stricter enforcement while others focused on deregulation.

THE IRS: TAX COLLECTION AND ENFORCEMENT
The Internal Revenue Service (IRS) has a history dating back to 1862 when President Abraham Lincoln established it to help fund the Civil War. Initially, the tax system imposed a 3% levy on incomes between $600 and $10,000 and a 5% tax on incomes exceeding $10,000. Over time, the IRS evolved into the primary revenue service for the federal government, responsible for collecting taxes, enforcing the Internal Revenue Code, and administering tax laws.

As an agency within the Department of the Treasury, the IRS is overseen by the Commissioner of Internal Revenue, who serves a five-year term after being appointed by the president. The current commissioner, Danny Werfel, a former trial attorney with the Department of Justice, leads the agency in handling tax filings, investigating fraud and managing benefits programs such as the Affordable Care Act. The IRS remains a vital institution for maintaining government operations and ensuring tax compliance.

In my next article, I will discuss the FDA, HUD, Fannie Mae and Freddie Mac. •

Ken Greene is an attorney at his SoCal firm, the Law Office of Kenneth Charles Greene.

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