SEC Raises Bank of America Pot to $150 million

Mary Schapiro and her band of incompetents went all in and presented a $150 million settlement offer to U.S. District Court Judge Jed Rakoff. Judge Rakoff rejected their prior settlement of $33 million stating that it penalized shareholders and failed to hold individuals accountable for wrongdoing.

Mary is unrelenting in her enforcement endeavors; in addition to paying the “harmed” shareholders $150 million, Bank of America agreed to improve disclosure and corporate governance. WOW!

Let grandpa attempt to get my arms wrapped around this. Judge Rakoff addressed two concerns, penalizing shareholders and making sure individuals were held accountable for wrongdoing. Mary raises the shareholder penalty pot from $33 to $150 million and omits applying penalties on individuals who mislead investors.

The Mission of the U.S. Securities ad Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.

Mary, I think you are over your head……