The SEC Adds a New Weapon: How Does the New Admission Requirement Change the Landscape?

Authors

Paul Radvany, Fordham Law School

Abstract

This Article will examine the SEC's revised settlement policy in the aftermath of Judge Rakoff's concerns about the SEC's longstanding "no admit, no deny" policy. In order to determine the import of the SEC's new settlement policy on the conduct of companies, as well as ongoing investigations and cases, this Article will also include analysis from lawyers who have advised their clients on the SEC's policy change.

Part II provides an overview of the SEC and its Enforcement Division, and describes the SEC's prosecutorial discretion. Part III examines Judge Rakoff's decisions in SEC v. Bank of Am. Corp.1 4 and SEC v. Citigroup Global Markets, Inc. Part IV analyzes the policy changes announced by Mr. Khuzami and Chair White, as well as the recent settlement agreements in which the SEC has required defendants to admit wrongdoing. Part V considers the likely effects that might result from the SEC's revised approach.

Disciplines

Dispute Resolution and Arbitration | Jurisprudence | Law | Law Enforcement and Corrections | Securities Law

Recommended Citation

Paul Radvany, The SEC Adds a New Weapon: How Does the New Admission Requirement Change the Landscape?, 15 Cardozo J. Conflict Resol. 665 (2014).
Available at: https://larc.cardozo.yu.edu/cjcr/vol15/iss3/4