Corporate America, Business Needs a Cop, Regulator or It Will Implode

Business Insider (06/06/2021)
  • SEC white-collar criminal investigations and fines declined significantly under Trump.
  • Major corporations including Cheesecake Factory, Under Armour and GE were found guilty of misleading investors (eg not disclosing financial distress, over-inflating current revenues) yet received minimal fines without admitting wrongdoing.
  • Jay Clayton, Trump’s appointed SEC Chairman (resigned December 2020), built his career as a white-collar defense attorney.
  • A bigger SEC issue (pre-Trump) has been the revolving door between SEC staff and Corporate America (conflicts of interest).
  • Ultimately, lax oversight could spark another financial crisis.