The SEC is still trying to prove it's back in the saddle--especially after two recent cases against Citibank and Bank of America were questioned by judges who felt the regulator was too lenient.
The SEC told the Financial Times today that it has many more potential cases in the works against banks and insurers related to the Wall Street crisis, much like the $550 million civil fraud case it brought against Goldman Sachs last month.
“Deterrence works in the white-collar world. Financial institutions look at cases like Goldman and review their own practices and risk-tolerance and think about how risky behaviour affects their brand,” Robert Khuzami, SEC director of enforcement, told the paper.
But is it all talk? What do you think?