Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

It's About Damn Time

2:00 PM -- $16.4 million and counting.

That's the amount of fines and penalties levied in the last six weeks by the National Association of Securities Dealers and the New York Stock Exchange on financial services companies that got sloppy with managing or producing electronic business records. (See Regulators Rip Records Managers.)

The article goes on to cite other examples in the last year in which securities firms got dinged for more than $2.5 million.

Chump change when your funds are worth billions? Maybe. But with the alphabet soup that makes up state and federal compliance laws, it's well past time we saw some enforcement action. Are these laws for real or not? Were legislators and regulators serious about protecting shareholders and individuals in the wake of WorldCom/Enron and mounting identity theft losses?

My inner cynic wonders why politicians haven't glommed on to this barrel shoot, especially in an election year. Surely there are others besides N.Y. Attorney General Eliot Spitzer with the nerve and political will to take on banks, insurance companies, and other financial companies. Or is the smarter play not to bite the hand that donates?

  • 1