LexisNexis Corporate & Securities Law Community 2011 Top 50 Blogs

Bon mots

"You can observe a lot just by watching." Yogi Berra

"We do not distain to borrow wit or wisdom from any man who is capable of lending us either." Henry Fielding, Tom Jones

"In our complex society the accountant's certificate and the lawyer's opinion can be instruments for inflicting pecuniary loss more potent than the chisel or the crowbar." United States v. Benjamin, 328 F.2d 854, 862 (2d Cir. 1964)

Time To Re-Envigorate Commission Enforcement Against Brokerage Industry

When Mary Schapiro becomes Chairman she like Commissioner Walters will be recused from participating in appeals from FINRA disciplinary actions. This means that a mere three Commissioners - two of them Republicans will decide all such appeals.

To this observer it appears that the Cox Commission has de-emphasized Commission enforcement action against FINRA regulated broker-dealers and registered persons and offloaded a substantial share of such enforcement actions to FINRA.

It is time to reinvigorate the Commission's own enforcement actions against broker-dealers and associated persons. It is also not unreasonable to conclude that a Cox lead de-emphasis on Commission enforcement actions against the industry has played a major role in the collapse and reorganization of the big brokerage firms, the Madoff mess, the marketing of toxic exotic securities and other recent issues.