Is the SEC Continuing to take a Rain Check?

Is the SEC Continuing to take a Rain Check?

 
Yesterday Judge Rakoff issued an order in SEC v. Bank of America, discussed here, rejecting the settlement of the SEC and the Bank. It is unusual for a judge to reject a settlement proposed by the parties in an SEC enforcement action. Proposed settlements are routinely accepted and executed. As the judge noted in his order, the parties are entitled to significant deference. The rejection of the settlement here however, is beyond unusual. It raises fundamental questions about the Commission, the Enforcement program and the repeated promises of the Chairman and her new Enforcement Director that the program is being rejuvenated.