Are you surprised? Study finds “that politically connected firms on average are less likely to be involved in SEC enforcement actions and face lower penalties if they are prosecuted by the SEC.” [Maria Correia, SSRN via Jeffrey Miron, Cato]
Are you surprised? Study finds “that politically connected firms on average are less likely to be involved in SEC enforcement actions and face lower penalties if they are prosecuted by the SEC.” [Maria Correia, SSRN via Jeffrey Miron, Cato]
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In other news, water is wet.
We have the best government money can buy.
Harry Markopolis presented to a high level (lawyer trained) official at the SEC a calculus type proof that Bernie Madoff’s operation was fraudulent. The fellow at the SEC could not follow the argument. Inspectors were sent to Madoff’s operation and they saw no problems. This complete inability to reason is not unique to the SEC, but it makes one wonder about the SEC’s ability to charge nebulous crimes like price manipulation (See the recent CATO video mention below.) or insider trading. I like President Obama very much, but I am troubled by his government’s use of mafia type shakedowns.