In Wood v. General Motors Corp., 865 F.2d 395 (1st Cir. 1988), Judge Levin Campbell gave this definition of “agency capture”

“Agency capture,” as explained by legal scholars, is the undesirable scenario where the regulated industry gains influence over the regulators, and the regulators end up serving the interests of the industry, rather than the general public.

While it is true that the classic theory of agency capture focuses on capture by the regulated industry, other interests may try to capture an agency’s regulatory agenda as well.

Last week, a group of 14 pension funds and fund sponsors wrote this letter to the Securities and Exchange Commission.  The group is promoting the following six initiatives...

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