Securities Industry Association President Mark Lacritz warned that the mutual fund and corporate scandals and resulting new compliance requirements have put both technology and financial services firms in a touch spot, he told 700 delegates at the annual SIA technology management conference in New York.
"Regulators, politicians and the media have put us on the defensive as an industry," Lacritz said. "The bull market in regulation has coincided with market declines, revenue declines and waning investor confidence. It has undoubtedly put us in a squeeze."
Lacritz said he is worried that one of the results of eliminating fraud will be tremendous pressure on operations budgets, saying that technology spending will almost certainly go up to comply with new regulations.