Wednesday, June 19, 2013
SEC Chair Says Agency Will Require Admissions in Some Settlements
It has been widely reported that SEC Chair White stated that the agency will seek admissions in settlements in certain cases, because "public accountability in particular kinds of cases can be quite important." Reuters, UPDATE 2-U.S. SEC to seek admissions in some settlements -White
Although described as a big change in enforcement policy, a majority of cases still will be settled without requiring any admissions from the defendants. Since becoming SEC Chair, there has been speculation about whether White, a former prosecutor, would change the "neither admit nor deny" policy. Senator Elizabeth Warren has pressed the SEC for details on its settlement policy. Meanwhile, the Second Circuit has not yet issued an opinion in its review of the SEC and Citigroup settlement, which Judge Rakoff refused to approve because he had no basis for determining the fairness of the settlement.