[Marxism] Seven Questions for the SEC regarding Goldman
michael at ecst.csuchico.edu
Sat Jul 17 12:07:53 MDT 2010
Today the Wall Street Journal has a very good article analyzing the
Goldman victory over the SEC. The article is not yet gated, so I put
the reference first.
Scannell, Kara and Susanne Craig. 2010. "SEC Split Over Goldman Deal."
Wall Street Journal (17 July): p. A 1.
Question 1: Is Ms. Casey really asking if the agency caved? Probably
not, but if so, that is interesting.
"Republican Commissioner Kathleen Casey questioned the SEC staff
Thursday on their decision to abandon the strongest fraud charge and
strike a settlement involving a lesser allegation, and given that, how
the SEC could justify such a large penalty on a lesser charge."
Question 2: Is Russell Ryan saying that the SEC did not have enough
proof to charge Goldman with intentional fraud rather than giving
incomplete information? After all, the fraud has been public knowledge
for some time. Why did the SEC cave?
"Russell Ryan, a former SEC enforcement lawyer, said the negotiation to
drop the strongest fraud charge is "usually a strong indication the SEC
had some doubt whether it could prove intentional fraud. Mr. Ryan, now a
defense lawyer at King & Spalding, said the SEC typically insists a
defendant settle on the strongest allegation made in its complaints.
Watering down the toughest charge, as in this case, is unusual."
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