Heavier SEC fines unlikely to dent fraud

The bill introduced by Sen. Jack Reed, D-R.I., and Sen. Charles Grassley, R-Iowa, that would give the SEC the power to levy heavier penalties for violating securities law is a step in the right direction.

But the legislation is unlikely to substantially deter fraud in the financial services industry, because — like most criminals — people who break securities law don’t expect to get caught. In fact, most violations are probably never discovered and those committing them are never punished.

via Editorial: Heavier SEC fines unlikely to dent fraud – InvestmentNews