The SEC is bracing for the release later this month of several investigative reports from the SEC's Inspector General, H. David Kotz. The WSJ reports that in September, the IG is expected to release no fewer than three high-profile reports covering issues that I have previously discussed here in detail, including:

a whistleblower's allegations that the agency has, since the early 1990s, been improperly discarding documents from closed preliminary investigations called Matters Under Investigation Inquiry (MUIs);

possible "conflicts of interest concerning payments to Bernard Madoff victims." As I discussed here previously, the former general counsel of the SEC and two of his brothers inherited $2 million that had been invested with Madoff, opening him up to questions of whether he was involved in Madoff-related matters; and 

the impact of the so-called "revolving door" between the SEC and Wall Street, which was the subject of my monthly column in August.

The WSJ says the reports may end up as fodder for Republicans seeking to cut the SEC's budget, something Kotz said he doesn't want. Kotz says he has "never advocated cutting the SEC's budget and I wouldn't be happy for my reports to be used as a reason to do this."