On September 21st, Meredith Cross, Director of the Division of Corporation Finance, and Lona Nallengara, Deputy Director of the Division of Corporation Finance, testified about regulatory review of capital formation rules and new capital raising strategies. According to Reuters, in a footnote to Cross' testimony, the SEC noted that she recused herself from discussion of a particular capital raising strategy, crowdfunding, due to her previous work with a "social lending platform," Lending Club. In light of the Becker investigation (see below), the SEC has recently grown more cautious regarding potential ethical conflicts. Recusal.