Header graphic for print
Cady Bar the Door Insight & Commentary on SEC Enforcement Actions and Related Issues

Category Archives: SEC Structure

Subscribe to SEC Structure RSS Feed

Wrapping up Securities Enforcement Forum 2014

Posted in Non-scienter-based Violations, SEC Litigation, SEC Structure

I was lucky enough to spend Tuesday at Bruce Carton’s Securities Enforcement Forum 2014.  In three years, it has gone from zero to the preeminent securities enforcement law conference anywhere.  I blogged it hurriedly throughout the day, but here are what I think are the most salient points or comments after some reflection: “Broken Windows”… Continue Reading

Congress Slashes SEC’s Technology Budget

Posted in SEC Structure

This isn’t a political post, I assure you.  We don’t do that sort of thing at Cady Bar the Door.  I’m just saying that the Washington Post reported a couple of weeks ago that Congress had taken away half of the $50 million the SEC had set aside for technology initiatives.  Vincent Morris, communications director… Continue Reading

JPMorgan Chase Admissions May Be Less Than Meet the Eye

Posted in SEC Litigation, SEC Structure

Drama continues with JPMorgan Chase’s London Whale trades.  For the few who don’t remember, the debacle emerged early last year, when trader Bruno Iksil, now known as the “London Whale,” lost a then-estimated $2 billion as a result of a series of derivatives transactions involving credit default swaps.  The trades, supposedly part of a JPMorgan… Continue Reading

You Can Go Home Again, but It Could Be a Thorny Path

Posted in SEC Structure

Spence Barasch knows.  You’ll remember that the SEC barred him for a year from appearing and practicing before the Commission for violating federal conflict of interest rules. Barasch was an associate director in the SEC’s Fort Worth office from 1998 to 2005, and according to a 2012 order, took part “personally and substantially” in an… Continue Reading

SEC Gets into the Data Analysis Game

Posted in SEC Structure

I’m a little late to this news, but it’s worth noting that among the SEC’s initiatives being started in recent months is the Center for Risk and Quantitative Analytics.  Basically, the Center is an attempt to help the Commission get a look around the corner and try to identify risky or abusive behavior in the… Continue Reading

SEC Buys Itself a Headache

Posted in SEC Litigation, SEC Structure

If you’re reading this, you’re surely aware of the several-years-old-now fight between the SEC and some federal judges regarding the SEC’s policy of settling cases while allowing defendants to neither admit nor deny the claims against them.  Very briefly, the SEC contends that its policy allows it to settle cases against companies that would otherwise… Continue Reading

Breaking: Study Confirms What I Think

Posted in SEC Litigation, SEC Structure

In the wake of the 2008 financial crisis and the Bernard Madoff scandal, there was no shortage of commentators suggesting that the SEC’s “revolving door” had contributed to both situations.  The idea was that SEC staff had gone soft on major players in the financial industry with the hope that lucrative employment by those players… Continue Reading

3½ Thoughts about the Consolidated Audit Trail

Posted in Broker-Dealers, FINRA, Insider Trading, SEC Structure

On July 11th, the SEC adopted Rule 613, a rule that requires national securities exchanges and FINRA “to jointly submit a comprehensive plan detailing how they would develop, implement, and maintain a consolidated audit trail that must collect and accurately identify every order, cancellation, modification, and trade execution for all exchange-listed equities and equity options… Continue Reading

Common Attacks on the SEC’s Neither-Admit-Nor-Deny Policy

Posted in SEC Litigation, SEC Structure

The House Financial Services Committee has promised to hold hearings on the SEC’s policy of including standard language in settlement papers saying that the defendant neither admits nor denies the allegations in the SEC’s complaint.  I thought I would turn to some commonly cited reasons for changing the policy and requiring admissions from defendants.  I don’t think they stand… Continue Reading

SEC-Rakoff Brawl Gets Messier

Posted in SEC Litigation, SEC Structure

It seemed like it was going to be a quiet week.  But the SEC’s enforcement action against Citigroup has gotten messier, and has morphed into a battle between those two entities and Judge Rakoff in the Southern District of New York.  As you know, on Nov. 28th Judge Rakoff rejected a proposed settlement between the regulator… Continue Reading