SEC: Back to the Basics? →

“With the announcement of these initiatives, it appears that the SEC is going back to basics to improve its enforcement statistics. In 2012, only 11 percent of the SEC’s enforcement actions were focused on accounting fraud and financial disclosures, a significant decrease from previous years….

Former SEC Chief Finds Consulting Firm Through Revolving Door →

Mary Schapiro, the former head of the Securities and Exchange Commission (SEC), is joining Promontory Financial Group LLC, a major private consulting firm stocked with former regulators, but she thinks she isn’t part of the revolving door.

Find out why.

Prospective SEC Chairman Dismisses Revolving Door Concerns →

Mary Jo White—President Obama’s nominee to serve as chairman of the Securities and Exchange Commission (SEC)—said at her confirmation hearing today that the investing public need not worry about her history of defending companies from the government.

But her explanation was less than reassuring. If potential conflicts of interest don’t disqualify this former corporate lawyer from doing the job of SEC chairman, her testimony showed, that’s largely because federal ethics rules are so permissive.

Read more on POGO’s blog.

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.

Check out the full report to see just how bad it has gotten.

“If you get caught with your hand in the till you go to jail, but if you’re a big bank and you’re caught breaking the law it seems that all that happens is you’re fined and told you’ll go to jail if you do it again.”

Rosie Sharpe, commenting on the fact that major banks are now “too big to prosecute” in the wake of HSBC avoiding any criminal charges despite laundering billions of dollars for drug cartels and organizations with connections to terrorists.

(Source: telegraph.co.uk)

Yet again, no one is going to jail for their role in the financial crisis →

The collapse of one mutual fund was central to the 2008 financial crisis, but the father-son team that led the mutual fund escaped punishment Monday when the Securities and Exchange Commission lost their case against them. Read the full story at The New York Times.

Government crackdown on money laundering to cost banks billions →

Hard to feel bad for the banks who will finally pay for years of money laundering for drug traffickers, terrorists and sanctioned countries. Isn’t it nice when regulators actually regulate?