by Pam Martens and Russ Martens, Wall Street on Parade:
Earlier this month, Senator Elizabeth Warren was so exasperated with the obstructionist role that Mary Jo White has played at the SEC that she sent her a sternly worded, 13-page letter calling her out on her serial broken promises.
Senator Warren highlighted White’s failure to finalize rules requiring disclosure of the ratio of CEO pay to the median worker; her failure to curb the use of waivers for companies that violate securities law; the SEC’s continued practice of settling the vast majority of cases without requiring meaningful admissions of guilt; and White’s repeated recusals related to her prior employment and her husband’s current employment at law firms representing Wall Street.
Now, Wall Street On Parade has uncovered a major new area of concern. For more than two years now, SEC Chair Mary Jo White has been aware that the most dangerous banks on Wall Street, which are publicly traded securities, have been engaging in “capital relief trades” with hedge funds and private equity firms to dress up the appearance of stronger capital while keeping the deteriorating assets on their books. But neither White nor her Director of Enforcement, Andrew Ceresney, have put a halt to the practice.
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