Professor Roberta Karmel spoke to the New York Law Journal about the recent announcement of Mary Schapiro to step down from her position as Chairwoman of U.S. Securities and Exchange Commission (SEC). Schapiro has been credited for revitalizing the role of the SEC as a response to the American financial crisis, but many also disapprove of her inaction to hold more Wall Street executives accountable. Critics specifically note a $550 million settlement with Goldman Sachs, which did not single out any senior executives for defrauding investors.
Professor Karmel agreed with Schapiro and the agency’s decision. “If the SEC was not able to negotiate settlements with the ‘neither admit, nor deny’ language, I think it would be hamstrung in its enforcement efforts,” she said. As a former SEC commissioner, she added that the practice “has been traditional for as long as I can remember.”
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