The US Securities and Exchange Commission doled out $1.1 billion in penalties last year, the lowest in two decades, reflecting a dramatic pullback by Wall Street’s top watchdog.
Enforcement actions and penalties levied by the US Securities and Exchange Commission have fallen to multi-decade lows, reflecting a dramatic pullback by Wall Street’s top watchdog.
The agency, which has seen budget and staff reductions under the Trump administration, doled out $1.1 billion in penalties last year, the lowest in two decades.
The decline drew a rebuke from Democrats who vowed increased scrutiny of its enforcement program in the next Congress, though an SEC official cautioned that “activity and effectiveness are not the same.”
While some suggested the figures were consistent with the agency’s stated aim of promoting more IPOs, “the obvious risk is, with less enforcement, you have a greater risk of fraud,” a law professor told the Financial Times.
— Brendan Ruberry
In brief
Enforcement actions and penalties levied by the US Securities and Exchange Commission have fallen to multi-decade lows, reflecting a dramatic pullback by Wall Street’s top watchdog. While some suggested the figures were consistent with the agency’s stated aim of promoting more IPOs, “the obvious risk is, with less enforcement, you have a greater risk of fraud,” a law professor told the Financial Times. — Brendan Ruberry
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