The Securities and Exchange Commission reportedly may be in the habit of talking tough and backing down. As with Bank of America, the SEC has handled several other opportunities exactly the same way by "cranking up the agency's enforcement efforts" and then letting Defendant companies "off the hook so easily". "Penalties Need Bite" in Breakingviews.com by Lauren Silva Laughlin and Dwight Cass, p. B2 col. 2 (New York Times Nat'l ed., "Business Day Section, Wednesday, August 12, 2009).
In BOA's case, the SEC for all its past efforts arranged a $33 Million payment by BOA and did not charge any individual, only the corporation. A United States District Judge refused to approve the 'settlement' at this time, pending further information including answers from the SEC to his questions about why the SEC did not file charges against the individuals determined to be responsible for paying the rushed Merrill Lynch "bonuses" which amounted to nearly $4 Billion even though Merrill lost $27 Billion, and why a $33 Million payment by BOA was a reasonable penalty given the offense.
When Federal Judges feel compelled to ask such questions, it is worth looking at what the SEC does rather than just listening to what the SEC says.
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