The U.S. government is not taking advantage of an enforcement tool that could potentially hold top Wall Street figures accountable for their role in the recent financial crisis, despite its prior success.
Broker-dealers, investment advisers, and others regulated by the Securities and Exchange Commission are required to supervise their representatives. If a trader engages in misconduct, the SEC can sue the management with “failure to supervise.”
But in some of the biggest cases the SEC has brought in recent months — against units of JPMorgan, Goldman Sachs, and Citigroup — the agency has sued only low-level bankers.
http://news.yahoo.com/analysis-sec-targ ... 3QD;_ylv=3Broker-dealers, investment advisers, and others regulated by the Securities and Exchange Commission are required to supervise their representatives. If a trader engages in misconduct, the SEC can sue the management with “failure to supervise.”
But in some of the biggest cases the SEC has brought in recent months — against units of JPMorgan, Goldman Sachs, and Citigroup — the agency has sued only low-level bankers.
