Through public statements and the recent handling of two high-profile settlements, Mary Jo White, chair of the U.S. Securities Commission (SEC), made it clear that the days when bankers could pay a token fine to get the government off their backs are coming to an end.
For serious violations, companies looking to settle with the SEC will have a choice: admit guilt or face her in court. Following her lead, other agencies and federal prosecutors are also demanding guilty pleas and enormous fines.
With a background prosecuting securities fraud and terrorism cases as U.S. Attorney for the Southern District of New York and years in high-end white-collar defense, White quickly drew the wary curiosity of bankers. As guilt momentum has grown over the last few months, her name elicits fear on Wall Street; one industry defense lawyer who prudently asked not to be named compares her to Rambo.
White and many know that there is something very wrong in their country with Wall Street, international banks and the lack of timely and ethical governance.
The bottom line: White has warned banks they can no longer just pay a fine to settle SEC cases--they'll also have to admit wrongdoing.