WASHINGTON (Reuters) - U.S. securities and futures regulators are considering creating a joint enforcement squad to investigate and root out fraud in the markets, two sources familiar with the matter said on Thursday.
The new squad would be made up of staff from the Securities and Exchange Commission and the Commodity Futures Trading Commission, who would come together to coordinate and manage joint investigations, the sources said.
The "task force" is one of the recommendations being considered by SEC and CFTC commissioners in an effort to end a turf fight over market jurisdiction.
The Obama administration has pressured the agencies to resolve long-standing conflicts and come up with recommendations for Congress to align their rules.
The recommendations are expected to be released on Thursday upon receiving the approvals of the SEC and CFTC commissioners.
Others being considered include the creation of a joint training program that may go beyond training for enforcement staff, one source said. The sources requested anonymity because the recommendations have not been made public.
Regulatory disputes have consumed the SEC and CFTC resources and created uncertainty in the marketplace as to how products will be regulated and laws enforced.
Regulatory lapses has been blamed for the global credit crisis and economic fallout, triggering calls for a sweeping overhaul of the country's financial regulatory system and intensifying demands for the agencies to stop fighting.
(Reporting by Rachelle Younglai; Editing by Phil Berlowitz, Leslie Gevirtz)
