Obama’s SEC Asks Big Banks To Sign ‘Never-Do-It-Again’ Pledges, After Banks Repeatedly Broke Past Promises
"Obama’s SEC Asks Big Banks To Sign ‘Never-Do-It-Again’ Pledges, After Banks Repeatedly Broke Past Promises"
Yesterday, the New York Times reported on deals brokered with the nation’s biggest banks by Robert Khuzami, the Securities and Exchange Commission’s director of enforcement. Khuzami has sought relatively small fines for frauds committed by big Wall Street companies, which he justifies by asking the banks to sign “never-do-it-again” pledges. But the Times conducted an analysis of enforcement actions and found that during the last 15 years, there were “at least 51 cases in which 19 Wall Street firms had broken antifraud laws they had agreed never to breach,” calling into question the validity of any new promises the banks might make. As ThinkProgress has noted, Khuzami was recommended for his position by Richard Walker, a regulator who spun through the revolving door to work at Deutsche Bank after allegedly squashing an SEC inquiry into a case of suspected insider trading at Deutsche Bank.