Financial Crisis is forgotten. Even sounds of gentle wrist-slapping fade. Penalties imposed during the first half of 2017 on Wall Street firms by their regulators – the Securities and Exchange Commission (SEC), the Commodities Futures Trading Commission (CFTC), and the Financial Industry Regulatory Authority (Finra) – plunged 65% compared to the same period in 2016.
During the first half in 2016, $1.4 billion in fines were levied on Wall Street firms by the three regulators. In 2017, the total was down to $489 million, according to data collected by The Wall Street Journal.
In this context, Wells Fargo doesn’t have much to fear after admitting a week ago that since 2012 it had quietly added unneeded comprehensive and physical damage insurance to the car payments of 570,000 (or 800,000) of its auto-loan customers.
The SEC imposed $318 million in fines in the first half, down 58% from the same period a year ago, based on The Journal’s search of federal documents and publicly available records on the SEC’s website, along with data provided by University of Virginia law school professor Andrew Vollmer.
This post was published at Wolf Street on Aug 7, 2017.