Demos: By Nomi Prins: According to the SEC’s own report card on “Enforcement Actions: Addressing Misconduct that led to or arose from the Financial Crisis” the SEC has levied charges against 112 entities and individuals, of which 55 were CEOs, CFOs, and other Senior Corporate Officers.
In terms of fines; the SEC “ordered or agreed to” $1.4 billion of penalties, $460 million of disgorgement and prejudgment interest, and $355 million of “Additional Monetary Relief Obtained for Harmed Investors. That’s a grand total of $2.2 billion of fines. (The Department of Justice dismissed additional charges or punitive moves.)
Goldman Sachs received the largest fine, of $550 million, taking no responsibility (in SEC-speak, “neither confirming nor denying” any wrongdoing) for packaging CDOs on behalf of one client, which supported their prevailing trading position, and pushing them on investors without disclosing that information, which would have materially changed pricing and attractiveness. The DOJ found nothing else to charge Goldman with, apparently not considering misleading investors, fraud.
Categories: Americas, Civic Duties, Civil Rights, Demonstrations, United States