How Do You Fix SEC Broken Windows? The answer is – you can’t!

By Richard Bowen

The Securities and Exchange Commission (SEC) has recently announced it is discontinuing their enforcement program requiring admissions of wrongdoing and the prosecutorial approach they were supposedly taking after the 2008 financial crisis. Steven Peikin, co-director of the SEC’s enforcement division, said the SEC would drop the “broken windows” strategy of pursuing many cases over even the smallest legal violations, and may also pull back from trying to make some companies admit to wrongdoing as a condition of settling with the SEC.” 

Remember in 2013, under Mary Jo White’s leadership, the SEC announced it would make companies and individuals admit wrongdoing as a condition of settling civil charges in certain cases. Continue reading

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Chris Christie can’t afford to pay public teacher pensions… but still hands education megacorp $82m in subsidies

Chris Christie can’t afford to pay public teacher pensions… but still hands education megacorp $82m in subsidies.

It’s not because NJ “can’t afford” to pay pensions – it appears its because NJ carelessly invested in fraudulent securities without thorough due diligence like nearly every other state in America. They gambled away the retirement funds of their employees.

In the NY Times today SEC Mary Jo White announced the use of Section 20(b) of the Exchange Act – indirect culpability … It’s time to grill the finance directors on who gave the orders to buy these crappy securities because they had to know (especially after 2004) that these were questionable investments. What promises were made by the investment banks in exchange for the pension fund investments?