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124 Yale L. J. 209 (2014-2015)
SEC Monetary Penalites Speak Very Loudly, but What Do They Say - A Critical Analysis of the SEC's New Enforcement Approach

handle is hein.journals/ylr124 and id is 217 raw text is: COMMENT SEC Monetary Penalties Speak Very Loudly, But What Do They Say? A Critical Analysis of the SEC's New Enforcement Approach The U.S. Securities and Exchange Commission (SEC) has not been shy about promoting its use of monetary punishments under new Chair Mary Jo White.' In September 2013, White asserted that we must make aggressive use of our existing penalty authority, recognizing that meaningful monetary penalties -whether against companies or individuals -play a very important role in a strong enforcement program.2 Co-Director of Enforcement Andrew Ceresney was even more blunt in an address several days later: Monetary penalties speak very loudly and in a language any potential defendant understands . . . . Enforcement needs to be aggressive in our use of penalties.3 Although the rhetoric is new, the SEC's growing reliance on monetary penalties preceded White's appointment.4 The amount of penalties that the SEC has assessed against securities law violators in judicial and administrative proceedings since 1990 has increased at a calculated annual growth rate of 22%, 1. White was sworn in on April 10, 2013. SEC Biography: Chair Mary Jo White, SEC. & EXCHANGE COMMISSION, http://www.sec.gov/about/commissioner/white.htm [http://perma.cc/W6SU-S8TR]. a. Mary Jo White, Chair, Sec. & Exch. Comm'n, Remarks at the Council of Institutional Investors Fall Conference in Chicago, IL: Deploying the Full Enforcement Arsenal (Sept. 26, 2013), http://www.sec.gov/News/Speech/Detail/Speech/1370539841202 [http:// 2. Mary Jo White, Chair, Sec. & Exch. Comm'n, Remarks at the Council of Institutional Investors Fall Conference in Chicago, IL: Deploying the Full Enforcement Arsenal (Sept. 26, 2013), http://www.sec.gov/News/Speech/Detail/Speech/13705398412o2 [http:// perma.cc/NC83-6BAQJ. 3. Jean Eaglesham, SEC Ramps Up Fine Amounts to Deter Misconduct, WALL ST. J., Oct. 1, 2013, http://online.wsj.com/news/articles/SBooo'424o5272303918804579109554149460532 [http://perma.cc/9MPE-Z7NC]. 4. See infra Figure 1. 209