Why Isn’t the SEC Cracking Down Harder on Banks?

[Owlet]

"These recent events beg a deeper look at the system of SEC enforcement. Why has the SEC apparently pursued such minimal settlements? The answers are surprising in that they reflect a wide discrepancy of views.

I found three very different explanations. But they all suggest that we have a broken system that must be fixed so that capitalism can operate properly.

First, the SEC enforcement division is underfunded and therefore lacks the resources to pursue a large number of complex trials. Critics say this reflects a deliberate effort by Congress, influenced by large financial institutions, to prevent punishment for malfeasance.  If true, this suggests yet another example of how our largest financial institutions  are preventing actual capitalism from functioning, often in ways that are not obvious.

Second, without the no admission of guilt clause, defendants would open themselves up to a stream of well-funded plaintiff actions based on admitted guilt and even risk bankruptcy……

Third, it can be explained by the revolving door, where former SEC enforcement officials are going to work for the very same firms they used to police.” …..

More at link

http://www.newdeal20.org/2011/12/15/why-isnt-the-sec-cracking-down-harder-on-banks-67400/

[Ruby the Liberal]

1. If they had listened to Brooksley Born back in the 90s

the momentum for regulation and transparency just *might* have set off on a different course.

Rubin, Summers & Co decided to double down on the opposite choice - remove Glass Steagal, take the teeth out of the Regulators (allowing penalties to pass with fines and no sunlight as to what was actually done - or admission of malfeasance), etc - and here we are.

[dixiegrrrrl]

2. Why aren't banks being pursued for all the CRIMINAL acts????

should be another big question.
SEC is only for civil charges.
Banksters have been breaking dozens of fraud laws for years.

[Ruby the Liberal]

3. Well, the SEC may be civil, but their

prosecutions work hand in hand with the FBI. A former coworker was investigated by the SEC, who turned the case over to the FBI for prosecution. He and his cohorts are now residents of the penal system and SEC charges are pending with that court case upcoming.

Odd that they can work so seamlessly with the Feebs on prosecuting individuals, but then turn the other way and 'agree to disagree' with corporate malfeasance with sealed records and a token fine, aye?

[Po_d Mainiac]

4. Because Wall Street shares with (read: OWNS) the politicos. n/t

[dixiegrrrrl]

5. Well, yes.....there IS that.

[banned from Kos]

6. Which bank? My bank is small and has about 10 branches.

Should the CEO hang on a rope till dead?

[Ruby the Liberal]

7. Has you bank been involved in activities that are in violation

of SEC regulations?

[rdking647]

8. ive said it before

indict 1 big bank for CRIMINAL violations. if they convicted they are out of buisness. that will get all the other banks to fall into line immediatly since they will be aware that the penalty for further crimes is corporate death