US Regulator Pledges Harsher Punishment for Wall Street Misdeeds
- Top CFTC enforcement attorney lays out policy shift for agency
- There will be higher fines and admissions of wrongdoing
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Wall Street firms will soon face stiffer penalties for running afoul of US derivatives rules and more often admit their misconduct when settling with the Commodity Futures Trading Commission.
When US regulators, including the CFTC, agree to resolve cases, financial companies are often allowed to pay fines while not admitting to the government’s allegations. But the commission’s top enforcement attorney, Ian McGinley, said Tuesday that the watchdog will start taking a tougher stance in negotiations.