Securities And Exchange Commission Quotes

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I am noticing a big difference in the way the hospital workers are looking at me as I approach Jess’s room. The look of sincere sympathy that used to be on their faces when they made eye contact with me is gone. It has been replaced by shear helplessness as they quickly walk past me with their heads tilted down and to the right. I feel like Bud Fox walking into his office with the Securities and Exchange Commission awaiting him.
JohnA Passaro (6 Minutes Wrestling With Life (Every Breath Is Gold #1))
Less than three months later, the walls began closing in again: on March 14, 2018, the Securities and Exchange Commission charged Theranos, Holmes, and Balwani with conducting “an elaborate, years-long fraud.” To resolve the agency’s civil charges, Holmes was forced to relinquish her voting control over the company, give back a big chunk of her stock, and pay a $500,000 penalty. She also agreed to be barred from being an officer or director in a public company for ten years. Unable to reach a settlement with Balwani, the SEC sued him in federal court in California. In the meantime, the criminal investigation continued to gather steam. As of this writing, criminal indictments of both Holmes and Balwani on charges of lying to investors and federal officials seem a distinct possibility.
John Carreyrou (Bad Blood: Secrets and Lies in a Silicon Valley Startup)
THE NEW DEAL didn’t transform the Constitution only by institutionalizing nine unelected judges with lifetime tenure as a permanent constitutional convention, turning Woodrow Wilson’s theory into hard reality. It also allowed Congress to create, at the president’s request and with the blessing of the Court, an unprecedented regulatory state, made up of a constellation of administrative agencies—from the Federal Housing Administration and the Federal Communications Commission to the National Labor Relations Board and the Securities and Exchange Commission—that make rules, enforce them, and adjudicate transgressions of them.
Myron Magnet (Clarence Thomas and the Lost Constitution)
an official with the U.S. Securities and Exchange Commission learned I was writing about specialization and contacted me to make sure I knew that specialization had played a critical role in the 2008 global financial crisis. “Insurance regulators regulated insurance, bank regulators regulated banks, securities regulators regulated securities, and consumer regulators regulated consumers,” the official told me. “But the provision of credit goes across all those markets. So we specialized products, we specialized regulation, and the question is, ‘Who looks across those markets?’ The specialized approach to regulation missed systemic issues.
David Epstein (Range: Why Generalists Triumph in a Specialized World)
Still, one could argue—and many did—that Greenspan, at least, had no business being quite so shocked. Over the years, countless people had challenged his deregulatory dogma, including (to name just a few) Joseph Stiglitz and Paul Krugman, both Nobel Prize–winning economists, and Brooksley Born, who was head of the Commodity Futures Trading Commission from 1996 to 1999. Born eventually became something of a Cassandra figure for the crisis, since she repeatedly called for regulating the market for derivatives, those ultracomplex financial products that eventually helped bring down the economy. Those calls were silenced when Greenspan, along with then-Treasury Secretary Robert Rubin and then-Securities and Exchange Commission Chair Arthur Levitt, took the extraordinary step of convincing Congress to pass legislation forbidding Born’s agency from taking any action for the duration of her term.
Kathryn Schulz (Being Wrong: Adventures in the Margin of Error)
Questionable investment deals certainly contributed to a number of municipal financial crises that occurred after the 2008 stock market crash. Jefferson County, Alabama, for example, entered into interest rate swaps that helped swell its debt burden to $3 billion when interest rates collapsed. The county sued the lead underwriter, J.P. Morgan, on the grounds that it misled the county and investors. The Securities and Exchange Commission also imposed significant penalties on the underwriter in 2009. Detroit similarly entered swaps that the bankruptcy court ultimately settled for much less than their face value after the bankruptcy judge raised significant questions about the swaps' legality and enforceability.
Richard Schragger
In 1980, the Securities and Exchange Commission caused considerable damage to mutual-fund shareholder interests by permitting mutual funds to pay for marketing and distribution expenses directly from fund assets.
David F. Swensen (Unconventional Success: A Fundamental Approach to Personal Investment)
While I was researching this book, an official with the U.S. Securities and Exchange Commission learned I was writing about specialization and contacted me to make sure I knew that specialization had played a critical role in the 2008 global financial crisis. “Insurance regulators regulated insurance, bank regulators regulated banks, securities regulators regulated securities, and consumer regulators regulated consumers,” the official told me. “But the provision of credit goes across all those markets. So we specialized products, we specialized regulation, and the question is, ‘Who looks across those markets?’ The specialized approach to regulation missed systemic issues.
David Epstein (Range: How Generalists Triumph in a Specialized World)
The Securities and Exchange Commission was created in 1934, and, together with other checks and balances (including class-action suits), it helped build a sense of professional ethics among managers, auditors, and other market participants, leading to the creation of a securities market of unprecedented size, with unprecedented participation. At the peak of the market in March 2000, the market capitalization of U.S. stocks (as measured by the Wilshire index) was $17 trillion, or 1.7 times the value of American GDP. Half of all U.S. households owned equities. The world has changed a great deal, however, over the past sixty years. New forms of deception have been developed. In the go-go environment of the nineties while market values soared, human values eroded, and the playing field became terribly unlevel once again, contributing to the bubble that burst soon after the beginning of the new millennium. The
Joseph E. Stiglitz (The Roaring Nineties: A New History of the World's Most Prosperous Decade)
Public companies, which sell stock on the open market, must file a series of reports with the Securities and Exchange Commission (SEC) each year if they have at least 500 investors or at least $10 million in assets. Smaller companies that have incorporated and sold stock must report to the state in which they incorporated, but they aren't required to file with the SEC. You can find more details about the SEC's reporting requirements for public companies in Chapters 3 and 19.
Lita Epstein (Reading Financial Reports For Dummies)
On March 31, 2016, Securities and Exchange Commission chair Mary Jo White said this to the students of Stanford Law School: Nearly all venture valuations are highly subjective. But, one must wonder whether the publicity and pressure to achieve the unicorn benchmark is analogous to that felt by public companies to meet projections they make to the market with the attendant risk of financial reporting problems. And, yes that remains a problem. We continue to see instances of public companies and their senior executives manipulating their accounting to meet various expectations and projections.1 We have reached a point in the world of technology startups where the fervor for building a company with a billion-dollar valuation — the elusive startup unicorn — is overshadowing the creation of real value. It is not the first time we have been here; the world of startups and venture capital has always run in cycles, from optimistic zeal to caution to post-catastrophe introspection and back again. But perhaps it is time that entrepreneurs and investors alike begin waking up to the fact that the “valuation-at-all-costs” model, with its relentless pressure, remote odds of success, and human cost, is not only unsustainable but bad business. At this point in the current cycle, the radically overvalued startup appears to be headed for the endangered species list. That is a good thing. While billion-dollar behemoths will always exist, and the high-wire act of chasing scale while also chasing the cash to fund that scale will occasionally produce a solid company, there are other ways to build a business. There are better ways to build a business.
Brian de Haaff (Lovability: How to Build a Business That People Love and Be Happy Doing It)
His path was in some ways traditional—Stanford to Stanford Law to judicial clerkship to high-powered law firm—but it was also marked by bouts of rebellion. At Stanford he created and published a radical conservative journal called The Stanford Review, then he wrote a book that railed against multiculturalism and “militant homosexuals” on campus, despite being both gay and foreign born. His friends thought he might become a political pundit. Instead he became a lawyer. Then one day, surprising even himself, he walked out of one of the most prestigious securities law firms in the world, Sullivan & Cromwell, after seven months and three days on the job. Within a few short years, Thiel formed and then sold PayPal, an online payments company, to eBay for $ 1.5 billion in July 2002, the month that Nick Denton registered the domain for his first site, Gizmodo. With proceeds of some $ 55 million, Thiel assembled an empire. He retooled a hedge fund called Clarium into a vehicle to make large, counterintuitive bets on global macro trends, seeding it with $ 10 million of his own money. In 2003, Thiel registered a company called Palantir with the Securities and Exchange Commission. In 2004, he would found it in earnest. The company would take antifraud technology from PayPal and apply it to intelligence gathering—fighting terrorism, predicting crime, providing military insights. It would take money from the venture capital arm of the CIA and soon take on almost every other arm of the government as clients.
Ryan Holiday (Conspiracy: Peter Thiel, Hulk Hogan, Gawker, and the Anatomy of Intrigue)
Senator Warren questions SEC chair on broker reforms 525 words By Sarah N. Lynch WASHINGTON (Reuters) - Senator Elizabeth Warren said Friday that the Labor Department should press ahead with brokerage industry reforms, and not be deterred by the Securities and Exchange Commission's plans to adopt its own separate rules.    President Barack Obama, with frequent Wall Street critic Warren at his side, last month called on the Labor Department to quickly move forward to tighten brokerage standards on retirement advice, lending new momentum to a long-running effort to implement reforms aimed at reducing conflicts of interest and "hidden fees." But that effort could be complicated by a parallel track of reforms by the SEC, whose Chair Mary Jo White on Tuesday said she supported moving ahead with a similar effort to hold retail brokers to a higher "fiduciary" standard. "I want to see the Department of Labor go forward now," Warren told Reuters in an interview Friday. "There is no reason to wait for the SEC. There is no question that the Department of Labor has the authority to act to ensure that retirement advisers are serving the best interest of their clients." Warren said that while she has no concerns with the SEC moving forward to write its own rules, she fears its involvement may give Wall Street a hook to try to delay or water down a separate ongoing Labor Department effort to craft tough new rules governing how brokers dole out retirement advice. She also raised questions about White's decision to unveil her position at a conference hosted by the Securities Industry and Financial Markets Association (SIFMA), a trade group representing the interests of securities brokerage firms. Not only is the SEC the lead regulator for brokers, but unlike the Labor Department, it is also bound by law to preserve brokers' commission-based compensation in any new fiduciary rule.     "I was surprised that (Chair) White announced the rule at a conference hosted by an industry trade group that spent several years and millions of dollars lobbying members of Congress to block real action to fix the problem," Warren said. Warren, a Massachusetts Democrat who frequently challenges market regulators as too cozy with industry, stopped short of directly criticizing White. The SEC and SIFMA both declined to comment on Warren's comments. SIFMA has strongly opposed the Labor Department's efforts, fearing its rule will contain draconian measures that would cut broker profits, and in turn, force brokers to pull back from offering accounts and advice to American retirees. It has long advocated for the SEC to take the lead on a rule that would create a new uniform standard of care for brokers and advisers. The SEC has said it has been coordinating with the Labor Department on the rule-writing effort, but on Tuesday White also acknowledged that the two can still act independently of one another because they operate under different laws. The industry and reform advocates have been waiting now for years to see whether the SEC would move to tighten standards.     Warren expressed some skepticism on Friday about whether the SEC will ever in fact actually adopt a rule, saying that for years the agency has talked about taking action, but has not delivered. (Reporting by Sarah N. Lynch; Editing by Christian Plumb)
We were supposed to keep tabs on the institutions as a whole, but by law we had to defer to the primary supervisor, in those cases the OCC for their commercial banks and the Securities and Exchange Commission for their investment banks. The Fed also shared responsibility for the U.S. affiliates of foreign banks with state regulators, as well as home-country supervisors in London, Zurich, Frankfurt, and around the world. These divisions of labor evoked the parable of the blind men and the elephant, with nobody accountable for seeing the full picture of a corporation, much less the interconnections of the entire system. This glut of watchdogs with overlapping
Timothy F. Geithner (Stress Test: Reflections on Financial Crises)
The US Securities and Exchange Commission is a tough regulator. It goes through every document with a fine-tooth comb. Every claim in an offer document has to have supporting evidence and one cannot make a forward-looking statement. If one does, the Commission will ask a company to explain why.
Tamal Bandopadhyaya (A Bank for the Buck)
called for the repeal of all campaign-finance laws and the abolition of the Federal Election Commission (FEC). It also favored the abolition of all government health-care programs, including Medicaid and Medicare. It attacked Social Security as “virtually bankrupt” and called for its abolition, too. The Libertarians also opposed all income and corporate taxes, including capital gains taxes, and called for an end to the prosecution of tax evaders. Their platform called for the abolition too of the Securities and Exchange Commission, the Environmental Protection Agency, the FBI, and the CIA, among other government agencies.
Jane Mayer (Dark Money: The Hidden History of the Billionaires Behind the Rise of the Radical Right)
In the United States, three organizations are particularly important in establishing accounting principles—the Securities and Exchange Commission (SEC), the Financial Accounting Standards Board (FASB), and the International Accounting Standards Board (IASB).
Williams (Financial & Managerial Accounting)
If bankruptcy were on a level playing field, CEOs would not be permitted to sock away generous executive pay out of the reach of a bankruptcy judge. If enforcement of these building blocks were not tilted toward CEOs, presumably the Securities and Exchange Commission would bar CEOs from pumping up share prices through buybacks and then cashing in their options, as the SEC once did. Moreover, CEO pay in excess of $1 million would not be deductible, even if linked to performance. If all the building blocks were not tilted toward large corporations, these companies would not be earning the substantial profits that have allowed their top executives to earn princely sums to begin with.
Robert B. Reich (Saving Capitalism: For the Many, Not the Few)
Regulators lent a helping hand. On a spring afternoon in late April 2004, five members of the Securities and Exchange Commission gathered in a basement hearing room to meet a contingent of representatives from Wall Street’s big investment banks to talk about risk. The banks had asked for an exemption for their brokerage units from a regulation that limited the amount of debt they could hold on their balance sheets. The rule required banks to hold a large reserve of cash as a cushion against big losses on those holdings. By loosening up these so-called capital reserve requirements, the banks could become more aggressive and deploy the extra cash in other, more lucrative areas—such as mortgage-backed securities and derivatives.
Scott Patterson (The Quants: How a New Breed of Math Whizzes Conquered Wall Street and Nearly Destroyed It)
While Immelt said that he encouraged debate, meetings often lacked rigorous questioning. One executive recalled being in a board meeting in which Keith Sherin was presenting the quarterly financial results to the group. The Power business had missed badly, but little specific detail was provided on what went wrong. This executive braced for the reaction from the directors, but it never came—none of them asked what went wrong. When Flannery committed to renewing and shrinking the board of directors, it included half a dozen current or former CEOs, the former head of mutual fund giant Vanguard Group, the dean of New York University’s business school, as well as a former chair of the Securities and Exchange Commission. The seventeen independent directors got a mix of cash, stock, and other perks worth more than $300,000 a year. The terms had been even more generous when GE still made appliances; the company allowed directors to take home up to $30,000 worth of GE products in any three-year period. The company matched the directors’ gifts to charity, and upon leaving the board, a director could send $1 million in GE money to a charity. Some directors admitted to having been sold by Immelt’s sweeping optimism, even if they knew he wasn’t the best deal-maker. But they knew he had a hard job, was playing with a tough hand, and had survived multiple major crises. Plus, they liked him. Immelt said that he did his best to keep directors informed, noting that he required them to make trips to GE divisions on their own, but he also knew that the complexity of the business limited their input. As they’d done under Welch, the board usually tended to approve his recommendations and follow his lead. Some felt that Immelt manipulated the board, and it was whispered that members were chosen and educated to see the company through his visionary eyes. There was concern that the board didn’t entirely understand how GE worked, and that Immelt was just fine with that. Like many CEOs who are also their company’s chairman, he made sure that his board was aligned with him.
Thomas Gryta (Lights Out: Pride, Delusion, and the Fall of General Electric)
As I was researching the criminal act’s I noticed that there was a Securities and Exchange (SEC) Whistleblower Program. The SEC claims that their function as a government agency is the following: “The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. As more and more first-time investors turn to the markets to help secure their futures, pay for homes, and send children to college, our investor protection mission is more compelling than ever. As our nation’s securities exchanges mature into global for-profit competitors, there is even greater need for sound market regulation.
Richard Lawless (Capitol Hill's Criminal Underground: The Most Thorough Exploration of Government Corruption Ever Put in Writing)