Securities and Exchange Commission News

SEC Approves Nasdaq Deal for Facebook IPO But Lawsuits Could Follow

U.S. regulators approved Nasdaq OMX Group’s $62 million compensation plan for firms that lost money in Facebook Inc.’s glitch-ridden market debut, a victory for the exchange operator that also set the stage for potential lawsuits from firms seeking more. The …

SEC Testing ‘Customized’ Punishments

The U.S. Securities and Exchange Commission is experimenting with punishments that more closely fit the wrongdoing at issue in a bid to give its enforcement cases more bite. Criticized for its traditional practice of a broad ban on wrongdoers breaking …

Supreme Court Limits When SEC Can Levy Fraud Penalties

The U.S. Supreme Court on Wednesday limited the authority of the federal government’s top securities regulator to seek civil penalties over conduct that occurred more than five years before investigators took action. The nine-member court held on a unanimous vote …

SEC Needs Additional Funds to Implement Dodd-Frank: Chairman

The top U.S. securities regulator will urge lawmakers on Thursday to boost its funding, saying a failure to increase the budget could hamper its ability to enforce new rules of the road for Wall Street. The Securities and Exchange Commission …

President Obama to Nominate White to Head SEC, Renominate Cordray for Consumer Bureau

President Barack Obama will nominate former federal prosecutor Mary Jo White to head the Securities and Exchange Commission, the White House said on Thursday, showing a desire to have a tough cop policing Wall Street. White, the former U.S. attorney …

Accounting Method May Expose Firms to Shareholder Suits: Study

Disgruntled shareholders are more likely to sue firms that use principles-based accounting standards instead of rules-based standards, according to a recent study by a University of Iowa accounting researcher. The study by Richard Mergenthaler, assistant professor of accounting in the …

Supreme Court Weighs Government’s Statute of Limitation in Civil Penalty Cases

The U.S. Supreme Court on Tuesday appeared poised to curtail the power of the top federal securities regulator to seek civil penalties after exceeding the usual time limit for fraud investigations. In oral argument, justices from across the ideological spectrum …

Former Brooke Corp. Execs Again Indicted on Financial Fraud Charges

Two former executives of the now defunct insurance agency franchising firm, Brooke Corp., have been indicted on federal financial fraud charges, according to the U.S. Attorney’s Office in Kansas. A federal grand jury in mid-November charged Robert D. Orr of …

SEC Charges Oil CEO in Insider Trading With Colorado Insurance Exec

The Securities and Exchange Commission on Wednesday announced charges against the former CEO of a Denver, Colo.-based oil-and-gas company at the center of an insider trading scheme involving a Colorado insurance executive that the SEC began prosecuting last month. According to …

SEC Chief Schapiro to Leave Post; Walter Named Successor

The head of the U.S. Securities and Exchange Commission, Mary Schapiro, announced on Monday that she would step down from the agency on Dec. 14. SEC Commissioner Elisse Walter will be designated to succeed Schapiro upon her departure, the White …