SEC Ends Voluntary Investment Bank Regulation

Law360, New York (September 29, 2008, 12:00 AM EDT) -- Amid unprecedented, mostly downward gyrations in U.S. equity markets, the four-year era of voluntary investment bank regulation on Wall Street officially ended with a whimper on Friday.

U.S. Securities and Exchange Commission Chairman Christopher Cox announced the termination of a voluntary program designed to let such banks submit to oversight.

“The last six months have made it abundantly clear that voluntary regulation does not work,” Cox said in a sharply worded statement.

The move comes after Wall Street's five biggest investment banking firms — Bear Stearns...
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