SEC chief speeding penalty process for violations
WASHINGTON -- The new head of the Securities and Exchange Commission is ending a practice that she said slowed the agency's enforcement efforts against corporate wrongdoing.
In her first public address as SEC chairman, Mary Schapiro said Friday that she is ending a two-year policy requiring agency enforcement attorneys to get approval from the commissioners before negotiating fines and penalties with companies accused of violations.
Schapiro said that practice "just sends the wrong message" and has caused delays. It is just one of the steps she said she is taking to revitalize the SEC's enforcement efforts and bolster investor protection.
Named head of the SEC by President Obama in December, Schapiro took the agency's helm and is being called on to help restore investor confidence shattered by the worst financial crisis in more than 70 years.
The SEC has also faced heavy and unrelenting criticism over its failure to discover the $50 billion Ponzi scheme allegedly run by money manager Bernard Madoff — despite credible allegations against him being brought to the agency over the course of a decade.
Five high-ranking SEC officials appearing before a House panel this week received a tongue-lashing from lawmakers who accused them of impeding their inquiry into the agency's breakdown over the Madoff affair.
In addition to the policy change, Schapiro outlined other steps to speed enforcement efforts at the agency. Those include changes to the process for issuing subpoenas in investigations, and improvements in the handling of tips and whistle-blower complaints.
"A strong and reinvigorated SEC will be on the beat to catch wrongdoing like never before," Schapiro said.
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