SEC capture…

Yves Smith at NC:

The SEC showed its true colors yet again at a panel at Stanford Law School at the end of March, although not as dramatically as last year. In last spring’s SEC panel at Stanford, the then head of examinations, Andrew Bowden, made such fawning remarks about private equity, including repeatedly saying he’d really like his son to work in the industry, that he resigned three weeks after we publicized the segment. Nevertheless, this conference was another demonstration of depth of regulatory capture at the agency.

As before, the real action came in when the audience members asked questions. They were all fielded by Andrew Ceresney, a former Debevoise & Plympton partner, now head of enforcement. We’re going to look at two questions in succession.


ADDENDUM: Beverly Mann here: This New Yorker article from last month is an absolute must-read.  After I read this post and Yves’ full post yesterday, I tried to find this article and link to it but couldn’t remember where it was published or any of the specific names in it.  But, by chance, I just came across it.

It’s just breathtaking.