“The Securities and Exchange Commission, regulator of our nation’s capital markets, has been captured by financial elites to the point that it favors Wall Street over Main Street.” If you enjoy intellectual history you may enjoy the first post, “What is ‘Capture’?” Otherwise, you can easily skip to the second, “Capture & the SEC”, with no harm to sense or understanding.

Our Captured Federal Regulator the SEC

Professor William Black Flunks Bethany McLean for Giving Hall Passes to Goldman Sachs and Wall Street

I first heard of William K. Black over 20 years ago as the regulator who had stood up to the “Keating 5” and come out the hero of the S&L crisis (in which I gained...
Patrick Byrne
6 min read

Moral Hazard at the SEC

When attempting to understand much of what happens at the Securities and Exchange Commission, I believe moral hazard is nearly as important a factor as the much more frequently-discussed matter of regulatory capture.
Judd Bagley
5 min read

Goldman’s gold has lost its luster

Goldman may be flush with cash, but with pressure mounting on politicians to reject any of it in the form of campaign contributions, suddenly that cash doesn’t spend nearly as well as it used...
Judd Bagley
2 min read

The SEC and its culture of regulatory capture

But dig a little deeper and you’ll find the Stanford case is the bigger outrage by far, not so much for the scam itself, but for the shocking behavior of the regulators tasked with...
Judd Bagley
8 min read

SEC Enforcement Chief Linda Thomsen Joins Davis Polk. Somebody Call Kreskin.

As a rule, I avoid criticizing individual public servants. Elected officials are fair game, in my view, but not public servants. They do not wake up and go into work wanting to do a...
Patrick Byrne
9 min read

A hedge fund suite for Richard Sauer

In a recent interview, SEC whistleblower Gary Aguirre offered his insights into the regulatory failings that allowed the Bernie Madoff scheme to reach such enormous proportions for so long. Aguirre places particular blame upon...
Judd Bagley
3 min read

Regulators Spring Into Action Against Naked Short Sellers. Or not.

As is explained in numerous pieces in DeepCapture, there are many cracks in the settlement system, one of them being the DTCC’s Continuous Net Settlement system, or CNS. I am highly confident that the...
Patrick Byrne
43 sec read

There. Was That So Hard?

In mid-2004 the Securities & Exchange Commission (itself a kind of a joint venture of the US federal government and Wall Street) adopted Regulation SHO. Among other things, “Reg SHO” insisted that exchanges publish...
Patrick Byrne
54 sec read

Wall Street Captures the SEC

For reasons that will eventually become clear, in early 2005 I began to believe that the SEC was behaving oddly, that is, in a manner inconsistent with its duties as a regulator. By the...
Patrick Byrne
9 min read

“Capture” Explained

In the late 19th century the work of governing the United States began its partial shift from legislatures to regulators. In 1887 the U.S. Interstate Commerce Commission was founded, and has served as a...
Patrick Byrne
7 min read