SEC Chair Mary Schapiro's Previous Agency Was Soft On Enforcement: Report

Legal Times:

An analysis conducted out of Sutherland Asbill & Brennan's Washington office shows the Financial Industry Regulatory Authority - the independent securities regulator that shares some authority with the Securities and Exchange Commission - was light on enforcement in 2008, similar to its public sector partner.

Read the whole story: Legal Times

Comments

[Harrier]

You cannot do anything if you don't have a budget for it. No surprise to lawmakers why there was no enforcement

[Carolab]

FINRA and the SEC and CFTC were deliberately weakened. The Fed was the umbrella regulator -- and Geithner let the banks do as they pleased...­.now Geithner wants to "regulate" the hedge funds:

Geithner to Seek Power Over Hedge Funds, Derivatives

Geithner’s framework would set up an independent overseer for systemically vital firms. While the Bush administration had proposed that the Federal Reserve take on that authority, Geithner won’t specify which agency should have the job.

The administration’s regulatory framework would make it mandatory for large hedge funds, private-equity firms and venture-capital funds to register with the SEC, subjecting them to new disclosure requirements and inspections by the agency’s staff.

Once registered, the investment firms would also have to reveal to the SEC -- but not to the public -- information about their trades and counterparties. The SEC would share the data with the systemic-risk regulator.­...

The investment firms would only fall under the increased scrutiny if they were deemed to pose systemic risks to the economy...

Geithner’s framework would also regulate derivatives by mandating that they be traded through so-called central counterparties.

The Fed, CFTC and SEC have been working to set up “clearinghouses” for swaps trades...

http://www.bloomberg.com/apps/news?pid=20601110&sid=a0V_8UoPk2A0

Geithner, like Paulson, seeks this central power to the Fed -- and the Fed has already established its own central clearinghouse with a monopoly over "derivatives" trade -- ICE Trust -- owned by the Fed banks -- and has been in operation since early March.

[themodernleader]

The most enigmatic feature of the Obama presidency is his embrace of the same treacherous, traitorous managers that swamped the financial, economic structure under the corrupt Bush Administration. I can only conclude that the President is himself corrupt or incompetent---or both. In any event this country is sliding into the abyss at alarming speed. Only CEO Obama can slow, stop, turn around this endangered organization. If he does not act soon and wisely, uncontrollable events will act for him. Then Americans will understand their peril without having to be told.

[jeffp26]

Under Mary Schapiro FINRA wasn't "light on enforcemen­t."

FINRA is and was a corrupt joke, used to persuade individual investors to trust that someone is looking out for them. Instead FINRA does everything It can to stack the deck in the favor of the industry it is supposed to regulate.

Remember that Harry Markopolous reported what he suspected about Madoff to the SEC. When he was asked why he did not report it to Mary Schapiro's FINRA, he said "Because FINRA IS CORRUPT!!!!!""

[jsgaetano]

Eight years of no laws- that was how the "fiscal conservatives" thought they would "fix" America.

Conservatives truly are the greatest threat America has ever had... and they are inside the gates.

[ErnestineBass]

Yeah, conservatives bad...what­ever.

How 'bout we stick to the subject at hand - Mary Shapiro's incompetence?

[jsgaetano]

How about we stick to the subject at hand- that conservatives can't be trusted, and we are now in a second Great Depression as a direct result of their criminal behavior.

[PhilipTaylor]

So far this sorry excuse for a regulator has done exactly what COX did and investigate the least payback and smallest crimes and let the $Trillion cr00ks alone.

Now at least we have more evidence she is owned by Wall Street!

[hill raiser]

good finance articles: http://www.alexandria.lib.va.us/link/redir.pxe?iamned.com

[hill raiser]

good finance articles: http://messagebot.com/cgi-bin/click.cgi?http://www.iamned.c0omgo

[iridium53]

What 'ya talkin' 'bout?
They "got" Martha!

Hundreds of deceitful individuals engaging in thousands of deceitful transaction that brought the economy to its knees. And they got Martha.

Let's see if this crop of so-called "regulators" can do better.

SEC alleged that Martha achieved ~$45k in gain. So, she was fined $30, spent 5 months in jail and 5 months in house arrest. Okay. So, now that's the standard.

For every $45k of deceitful gain - each individual should be fined $30k (66%) and spend 5 months in jail and 5 months on house arrest.

Anything less and Mary Schapiro, Robert Mueller, and Eric Holder will be proven to be totally full of hot air.

[sloreader]

"Light on enforcement"? Ya think? Thank you Captain Obvious!

[jerichoj8]

Old news. Where was this coverage when she was up for an appointment?

Like, how FINRA missed the fact Madoff NEVER made a trade?

[jeffp26]

Absolutely correct. Obama fell on his face with this pick. She's a joke, but not funny.