February 7, 2022
Without harsh enforcement with required admission of fault, and penalties IN EXCESS of profits made, retail investors will continue to have no faith in the US stock markets as a whole.
Self serving funds creating convoluted and extremely volatile financial instruments do so because the fine is a mere cost of doing business compared to the profit to be made, and due to fear of economic contagion and collapse they know that they can count on a Federal Reserve Bank or true US government backed bailout, no matter how often they cause hardship for average working Americans.
The 2010 rules proposal was NOT a violation of SEC role, and neither is this proposal. Contrary to what financial services professionals will claim, these rules are a token effort considering the penalties for fraud in any other professional field. If any revisions to the proposed rules are to be made, they should be to increase penalties exponentially, and include prison time for offenders.