Last Friday, Kara Stein, a top Securities & Exchange (SEC) member expressed her concern over the guilty pleas the government extracted from five banks over benchmark rate manipulation which she claims are essentially symbolic after the new round of regulatory waivers was granted.
It is not the first time Ms. Stein publicly dissented from the SEC’s decision earlier in the week to let Citigroup Inc., Barclays PLC and three other giant banks to keep certain regulatory privileges they otherwise would have lost after admitting guilt in the much publicized $5.6 Billion settlement (read our blog) reached last week involving claims of a massive, multiyear conspiracy by the institutions' traders to rig the foreign exchange market.
As in her past dissents, Ms. Stein blasted the vote by the majority of the five-member commission to allow the banks, which also include UBS AG, Royal Bank of Scotland Group PLC and JP Morgan Chase & Co. to keep their statuses as well-known seasoned issuers and, in some cases, retain their ability to engage in private placement activity. Normally, under SEC rules, firms lose those privileges if they are subject to a final judgment in a court as well as certain other penalties.
The experienced securities fraud attorneys at Colling Gilbert Wright & Carter represent investors in the Commodities Futures Trading Commission (CFTC) and the National Futures Association (NFA). If you have lost money as a result of an investment in foreign currencies or other commodities, please contact us for a free case evaluation.