Attack on Auctions: New Paper Contends SEC's Cost-Savings Estimate is Deeply Flawed

Also, round two of hearings on bank runs

Chair Gary Gensler’s ambitious plan to send retail stock trades to auctions largely hinges on his contention that it will save investors big money – as much as $2.35 billion a year, by the agency’s own estimate. But a new academic study that’s now rocketing around Wall Street pointedly questions that analysis. It found that not only is the SEC’s cost-sa…