US President Urges Tougher Laws on Finance Fraud

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WASHINGTON President Obama called on Congress Tues. to toughen laws against stocks fraud and to reinforce the ability of the Securities and Exchange Commission to punish Wall St firms that frequently violate antifraud principles. Now we need a finra arbitration barristers to resolve this issue.

In his State of the Union address, Mr. Obama also said he would ask the solicitor general to sanction a special monetary crimes unit to prosecute cases of big finance crime.

It is not clear how that effort would differ from the Financial Fraud Enforcement Task Force, a cross-agency group that Mr. Obama established in Nov 2009. Its mission, as the White House put it then, was to hold responsible those that helped cause the last monetary emergency and to stop another crisis from happening.

The 2 initiatives represent an attempt to give finance regulators a greater capability to police the monetary markets. In addition, the proposals try to recognize the continued frustration among many US people exemplified by the Occupy Wall Street movement that few finance executives have been prosecuted for their actions leading up to the emergency.

Given the election-year pressures and the continued gridlock on Capitol Hill, neither measure is sure to win approval in this session of Congress.

The issue of how to deal with Wall St firms that repeatedly violate instruments laws has come into focus recently as the S.E.C. Has stepped up its efforts to bring cases related to the financial crisis. Many of these cases involve finance firms that have violated the same laws many times in the past.

A New York Times research of S.E.C. Enforcement actions during the last 15 years, released in November, found at least 51 cases in which the S.E.C. Concluded that The Street firms had broken antifraud laws that, as part of settlements of earlier crime cases, they had promised never to breach. The 51 cases spanned 19 firms, including nearly all the largest financial companies Goldman Sachs, Morgan Stanley, JPMorgan Chase & Company and BOA among them.

Mr. Obama first outlined his scheme to crack down on repeat offenders in a business speech in December in Osawatomie, Kan. Too often, we have seen The Street firms violating major antifraud laws as the penalties are too weak and there’s no price for being a repeat offender, Mr. Obama recounted. No more. I’ll be looking for legislation that makes those penalties count so that firms do not see punishment for breaking the law as just the price of conducting business.

This article is related to investment scams and finra attorneys . The author is Terence Younghusband.

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