dimanche 15 mars 2015
S.E.C. Wants the Sinners to Own Up
Posted on 16:21 by nice news
For decades, the Securities and Exchange Commission has allowed companies and individuals to make settlements without admitting any wrongdoing. Even a company committing an egregious sin that cost investors millions of dollars could walk away from the proceedings without ever acknowledging its role.
But in mid-2013 the agency declared that it was doing an about-face.
“Heightened accountability or acceptance of responsibility through the defendant’s admission of misconduct may be appropriate, even if it does not allow us to achieve a prompt resolution,” Andrew Ceresney, the S.E.C.’s head of enforcement, said in a June 2013 email to his lieutenants.
Fair Game
A column from Gretchen Morgenson examining the world of finance and its impact on investors, workers and families.
At the Fed in 2009, Rolling the Dice in a Crisis MAR 7
Smothered by a Boom in Banking FEB 28
In Whole Foods Backlash, a Chance to Air Out Stagnant Boardrooms FEB 21
After the Housing Crisis, a Cash Flood and Silence FEB 14
Two Judges Who Get It About Banks JAN 31
See More »
The program represented a seismic shift in approach, but in practice it is still in its early stages. After two years, the S.E.C. has generated admissions of culpability in 18 different cases involving 19 companies and 10 individuals. Given the hundreds of settlements struck by the S.E.C. over this time, it is clear that most of the time defendants are still being allowed to settle without admitting to or denying the agency’s allegations.
S.E.C. officials say this age-old practice saves it from having to bring — and possibly lose — a case in court, allows the agency to return money to victims more quickly and conserves resources for other investigations.
Nevertheless, S.E.C. enforcement officials say they believe the policy change has sent a crucial message. “Requiring admissions adds a powerful tool in appropriate cases, and it has been extremely
But in mid-2013 the agency declared that it was doing an about-face.
“Heightened accountability or acceptance of responsibility through the defendant’s admission of misconduct may be appropriate, even if it does not allow us to achieve a prompt resolution,” Andrew Ceresney, the S.E.C.’s head of enforcement, said in a June 2013 email to his lieutenants.
Fair Game
A column from Gretchen Morgenson examining the world of finance and its impact on investors, workers and families.
At the Fed in 2009, Rolling the Dice in a Crisis MAR 7
Smothered by a Boom in Banking FEB 28
In Whole Foods Backlash, a Chance to Air Out Stagnant Boardrooms FEB 21
After the Housing Crisis, a Cash Flood and Silence FEB 14
Two Judges Who Get It About Banks JAN 31
See More »
The program represented a seismic shift in approach, but in practice it is still in its early stages. After two years, the S.E.C. has generated admissions of culpability in 18 different cases involving 19 companies and 10 individuals. Given the hundreds of settlements struck by the S.E.C. over this time, it is clear that most of the time defendants are still being allowed to settle without admitting to or denying the agency’s allegations.
S.E.C. officials say this age-old practice saves it from having to bring — and possibly lose — a case in court, allows the agency to return money to victims more quickly and conserves resources for other investigations.
Nevertheless, S.E.C. enforcement officials say they believe the policy change has sent a crucial message. “Requiring admissions adds a powerful tool in appropriate cases, and it has been extremely
S.E.C. Wants the Sinners to Own Up
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