The SEC is back to its old tricks, putting aside the public interest for private concerns. The latest maneuver involves lifting the ban on allowing highly risky investment vehicles known as hedge funds to advertise publicly for the first time. Yes, even in the bubblemania of the 1990s this was not done for fear people would lose their money in the riskiest part of the Wall Street casino.
|By: DSWright Friday March 22, 2013 6:00 am|
The Teflon Trader slips away again. For those who don’t know, Steve Cohen of SAC Capital, number 36 on Forbes’ Richest Americans list, has been under investigation for a good deal of his career. The suspicion is always the same, insider trading.
|By: DSWright Tuesday February 12, 2013 7:49 am|
A report by the Project on Government Oversight (POGO) finds that the incestuous nature of the SEC-Wall Street relationship caused reform efforts in the money market fund industry to fail.
|By: masaccio Sunday January 27, 2013 10:54 am|
Mary Jo White has a history of tough prosecution and strong representation of her Wall Street clients. Tough is good.
|By: DSWright Friday January 25, 2013 6:33 am|
Yesterday President Obama nominated Mary Jo White to head the Securities and Exchange Commission. The administration and establishment media highlighted White’s experience as a prosecutor and hinted at the possibility of a more aggressive SEC. But now that there has been time to digest the nomination there seems to be some familiar problems.
|By: DSWright Thursday January 24, 2013 2:15 pm|
President Obama announced his nominees for heading the Securities and Exchange Commission and the Consumer Financial Protection Bureau today.
|By: masaccio Sunday December 2, 2012 10:45 am|
Robert Khuzami thinks settling with cheats and frauds is a great idea. Why bother with all that silly trial stuff? He must be right, he’s on the short list for SEC Chair.
|By: David Dayen Thursday November 29, 2012 10:56 am|
Mary Miller, a Treasury Department official seen as the expected pick for the next head of the SEC, dropped out of contention yesterday, leaving an unclear path forward. Elisse Walter, who was designated as the new chair, replacing the departing Mary Schapiro, is seen as a stopgap pick. But her elevation to the top slot means that the SEC is one member down on its commission, with a 2-2 split between Democrats and Republicans. This will likely stall out almost all its important initiatives in the coming months until a new commissioner gets nominated and confirmed, and unless the Administration wants to give credence to the theory that they want to tie the bureaucratic hands of a key financial regulator, they need to nominate someone soon.
Speculation has focused not on a career prosecutor or someone with a record of tough oversight of the financial industry, but Sallie Krawcheck, “a longtime Wall Street executive” from Bank of America, and Robert Khuzami, the current head of enforcement.
|By: David Dayen Monday November 26, 2012 12:50 pm|
The White House, in announcing the departure of Mary Schapiro as Chairwoman of the SEC, also took the unusual step of “designating” her replacement – a way to fill the vacancy at the top of the commission without confirmation in the Senate. Elisse Walter, a current commissioner, will replace Schapiro.
|By: David Dayen Monday November 26, 2012 10:26 am|
Schapiro’s replacement matters. Simon Johnson kicked this off a few days ago, juxtaposing the bona fides of Treasury Department under secretary for domestic finance Mary Miller (a former mutual fund executive) against former Special Inspector General for TARP Neil Barofsky. There’s no question than an experienced prosecutor like Barofsky would change the SEC’s culture, but there’s almost no chance he will ever hold another job in Washington, as he was specifically told by Herb Allison right at the beginning of his book Bailout.