Transparency

SEC Could Publicize More Wrongdoing

The SEC is considering changing its practice of allowing settlements between individuals and companies to remain private. Currently, companies can pay a fee and avoid admitting wrongdoing or public scrutiny. Now the corporate watchdog may release the details of its investigations, an official tells The Washington Post. It's bad news for executives hoping to forego embarrassment. Said one securities lawyer "If you're being accused of wrongdoing, it's in your interest to have as few of the facts revealed as possible. To the extent that the SEC adopted a policy that would require a detailed recitation of the facts, companies might be more reluctant to agree to a settlement."