The Securities & Exchange Commission is charged with the responsibility of protecting America's investing public. Since the Great Recession, they have been aggressively policing stockbrokers and financial advisors . . . very aggressively! I think it had something to do with shutting the barn door on a timely basis.
The problem with such aggressive policing is that it focuses almost entirely on process, not results. The purpose of their process is to demonstrate a "culture of compliance." The more obsequious you are, the more likely you can avoid large fines for trivial matters. If I was chairman of the SEC, I would advocate for less trivial regulation and more violent punishment for those who cheat investors. Today, Bernie Madoff is sitting in a warm prison with three meals a day, free health care, and TV. He should have been shot!
President-Elect Trump has announced that the new SEC chairman will be Jay Clayton, a big time securities lawyer on Wall Street and represents Goldman Sachs - so much for "draining the swamp." But, he will be a sharp departure from the last few chairmen, who have been prosecutors, more interested in shaking down investment firms with heavy fines and light jail terms for the actual wrongdoers. At least, Clayton is a deal-maker, and that will be a big improvement.
It is time for a change, and I wish him well!
The problem with such aggressive policing is that it focuses almost entirely on process, not results. The purpose of their process is to demonstrate a "culture of compliance." The more obsequious you are, the more likely you can avoid large fines for trivial matters. If I was chairman of the SEC, I would advocate for less trivial regulation and more violent punishment for those who cheat investors. Today, Bernie Madoff is sitting in a warm prison with three meals a day, free health care, and TV. He should have been shot!
President-Elect Trump has announced that the new SEC chairman will be Jay Clayton, a big time securities lawyer on Wall Street and represents Goldman Sachs - so much for "draining the swamp." But, he will be a sharp departure from the last few chairmen, who have been prosecutors, more interested in shaking down investment firms with heavy fines and light jail terms for the actual wrongdoers. At least, Clayton is a deal-maker, and that will be a big improvement.
It is time for a change, and I wish him well!
