Mary Schapiro, chairman of the Securities and Exchange Commission, bridled against the proposal that the government create a consumer financial protection agency. Evidently, the SEC wants to maintain its regulatory control over mutual funds.

“It’s not a discrete thing to get moved away without damaging the fabric of the entire investment protection regime that is built up over many years here,” Schapiro said. “I will question pretty profoundly any model that would try to move investor protection functions out of the Securities and Exchange Commission,” which, she maintained, is committed to investor protection.

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