http://www.nytimes.com/2012/02/03/business/sec-is-avoiding-tough-sanctions-for-large-banks.html?hp
Since the recession began there has been some animosity between the public and Wall Street, whose speculation is often blamed for causing the 2008 recession and helped birth the Occupy movement. This article shows that the Security and Exchange Commission had actually been avoiding punishing companies that mislead its investors, and at a time when President Obama wants to "make punishments for fraud count" this looks unsettling. Though deregulation is part of the Anglo-Saxon model of capitalism there could be a strong public backlash against the organization because of it.
2 comments:
I'm not entirely sure about the power relationship between the White House and the S.E.C., but I'm pretty sure that the President has little control over the actions of the S.E.C., and no ability to fire acting commissioners. It's interesting since the rhetoric is coming from the President, but the actions (or lack thereof) are coming from the S.E.C. It will be interesting to see whether Obama will try to act within his own powers to "make punishments count", or try to pressure other agencies into more extreme action.
I'm not entirely sure about the power relationship between the White House and the S.E.C., but I'm pretty sure that the President has little control over the actions of the S.E.C., and no ability to fire acting commissioners. It's interesting since the rhetoric is coming from the President, but the actions (or lack thereof) are coming from the S.E.C. It will be interesting to see whether Obama will try to act within his own powers to "make punishments count", or try to pressure other agencies into more extreme action.
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