http://ow.ly/7aDjo
An article by Jesse Eisinger, Probulica. Posted on the dealbook.nytimes.com website.
The article discusses the S.E.C. and provides an argument that the recent settlement for $285 million with Citigroup regarding allegations of misleading customers sends a wrong signal. The article states, "...the S.E.C. accused one person — a low-level banker. Hooray, we finally got the guy who caused the financial crisis! The Occupy Wall Street protestors can now go home."
The author credits the S.E.C. for the investigations it has undertaken but feels that they are taking a risk averse stance when it comes to pursuing legal action. The author states, "Contrary to expectations, the embattled and oft-assailed agency has done almost everything right with structured finance investigations, taking aim at abuses related to C.D.O.’s and other complex deals.
The S.E.C. has also devoted adequate resources to the issue. It put together a special task force on structured finance, sending the proper signal of the agency’s priorities both internally and externally. The task force is staffed by bright people, an invigorating mix of young go-getters and experienced hands."
The article goes on to state, "The agency’s yardstick seems to be, who wrote the stupidest e-mail? Mr. Stoker of Citigroup wrote an incriminating e-mail that recommended keeping one crucial participant in the dark. Goldman’s Fabrice Tourre, the other functionary the agency has sued, wrote dumb things to his girlfriend.
But the S.E.C is not the G-mail G-man. It is the securities police. Imprudent e-mailing is not the only way to commit securities fraud."
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