Did The SEC Make A Rash (And Unfortunate) Real Estate Decision?

The SEC's internal watchdog has opened an investigation into the agency's leasing activity, including its decision in July to lease nearly 1 million square feet of office space without first receiving funding from Congress, according to the Washington Business Journal.

The lease has sparked criticism that the SEC acted rashly and may now be saddled with too much costly real estate in DC's Constitution Center, in downtown Washington.

The internal watchdog is also investigating the SEC'S decision this month to move 740 employees and contractors by September from two Alexandria facilities to space the agency is leasing in the District. The 10-year Constitution Center lease was signed for $44.80 a square foot with a 1 percent escalation a year.

One thing is for sure: the SEC's brash leasing decision comes at the most unfortunate of times: just as House Republicans are combing federal agency budgets and spending decisions for any evidence of waste.

It also comes just as the SEC has been lobbying for increased funding to carry out the broader responsibilities it was given by the Dodd-Frank Act.

SEC Chairman Mary Schapiro has said the agency needs to hire about 800 more staff members.

Any signs that the SEC has mismanaged its budget certainly won't help its case.