SEC Chairman Mary Schapiro, who took over in January, has pledged to reinvigorate the agency after its reputation was tarnished amid the worst financial crisis since the Great Depression. Lawmakers questioned SEC effectiveness after Lehman Brothers Holdings Inc. and Bear Stearns Cos. collapsed last year and tipsters said the agency didn’t pursue warnings that Madoff was running a $65 billion Ponzi scheme.

The SEC plans to invest in technology similar to that used by law firms that challenge the agency in investigations and litigation, according to the budget request. It also will add to its “forensic analysis” resources to improve scrutiny of market data during regulatory probes.

The SEC, which has about 3,500 full-time employees, investigates wrongdoing involving public companies, brokerage firms and money managers. It also writes rules for stock exchanges and what companies must disclose to investors about their finances and executive compensation.

The US Senate approved legislation last month that would give the SEC $40 million over the next two years to hire 60 additional investigators.

Source: Bloomberg