“The SEC has become “an agency that polices the broken windows on the street level and rarely goes to the penthouse floors,””
James Kidney, a lawyer who worked at the SEC for 18 years.
At the firm, he represented the likes of Kenneth D. Lewis, former chief executive of Bank of America who faced regulatory investigations over the bank’s hasty takeover of Merrill Lynchduring the depths of the financial crisis.
Mr. Ceresney, who defended JPMorgan from federal inquiries into wrongful foreclosure practices, also worked side by side with clients under scrutiny for selling troubled mortgage securities at the height of the housing boom.”
From a New York Times article about the resume of the leading candidate to be the chief of enforcement at the Securities and Exchange Commission.
Ceresney will be in charge of prosecuting banks and executives that he may have previously defended.
(Source: The New York Times)
If you aren’t ready to dive into the 59 pages and 274 footnotes of our recent report on the revolving door at the Securities and Exchange Commission, you can watch the 2 minute version below from The Huffington Post.
Great cartoon from Matt Wuerker at POLITICO about POGO’s recent report on the revolving door at the SEC.
A study of thousands of government records shows a pervasive culture at the Securities and Exchange Commission (SEC), the government’s top financial regulatory agency, of former SEC employees leaving the agency to go work at major banks. Former SEC employees have helped major firms secure exceptions from federal law, fight allegations of wrongdoing, and soften the blow of enforcement actions.
“The revolving door between the SEC and the firms it oversees is so pervasive that it threatens the integrity of our regulatory system,” said Michael Smallberg, the author of POGO’s new report.