SEC No-Admit Settlements: Leave Well Alone

Law360, New York (April 1, 2011, 2:47 PM EDT) -- With the U.S. Securities and Exchange Commission facing relentless pressure from Congress and the media to “get tough” on securities fraudsters, yet another of the agency’s bedrock rules of fair play is coming under increasing fire. Here’s hoping the commission has the fortitude to stand by and defend its own long-standing rule.

The embattled rule involves settlements between the SEC and the people it investigates. For decades, the agency has not required settling defendants to admit their wrongdoing, even though they always agree to refrain from...
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