Financial Crisis Of 2008 The Sec - 1156 Words

Since the financial crisis of 2008 the SEC’s mission has been to protect investors and win back the trust of the public in capital markets. In efforts to combat fraud and preventing another financial crisis, the SEC has grown their staff and is working on revamping their technological capabilities. For the last 3 years we have seen aggressive enforcement, strategic reforms and new regulations with in the division. FISCAL YEAR 2012 In the 2012 fiscal year the SEC heavily emphasized regulations under the Dobbs Frank act and the Securities Exchange Act of 1934. In this fiscal year under the Dobbs Frank act the SEC issued its first Whistleblower Program award. The Whistleblower Program allows the division to award individuals with high-quality information, which leads to an enforcement action. The success of this program has helped the SEC catch predators early on. It saves the division time and resources by uncovering and tipping off the crime to them. The program also helps identify fraud much earlier on. This can help elevate some of the damage to investors and even mitigate the number of possible victims. Also under the Dobbs Frank act the SEC barred 36 individuals from working in the securities industry. Another area where the SEC turned its attention to was The Securities Exchange Act of 1934. In September of 2012 the SEC made its first financial penalty against an exchange. The New York Stock Exchange was in violation of the NMS (National Market System)Show MoreRelatedFinancial Crisis Of 2008 Struck The World1398 Words   |  6 PagesWhen the financial crisis of 2008 struck the world, there were multiple business scams and schemes that became exposed, creating a colossal uproar and unrest around the world. When the stock market collapsed, people all across America took a hit, with 2.4 trillion dollars of the Americans people’s savings vanishing in just a few weeks. This financial crisis also brought to light an unprecedented amount of fraud, over exposing people who were cutting corners. One of the most famous scams that surfacedRead MoreWhich Factor Was Most Responsible For The Financial Crisis895 Words   |  4 PagesWhich factor was most responsible for the financial c risis The financial crisis from2007 to 2008 is considered the worst financial crisis since the Great Depression of the 1920s and destroyed the U.S. economy severely. It led the housing prices fell 31.8%, the unemployment rate rose a peak of 10% in the United States. Especially the subprime market, began defaulting on their mortgage. Housing industry had collapsed. This crisis was not an accident, it caused by varies of factors. The unregulatedRead MoreToo Big to Fail: The 2008 World Financial Crisis and Its Aftermath1779 Words   |  7 Pagesï » ¿ Too big to fail: The 2008 world financial crisis and its aftermath The 2008 world financial crisis begin the banking and housing sector, but spread like a contagion through the entire economy. Many date the beginnings of the problems far back before 2008, back to the historically low interest rates put into place by the Federal Reserve in the wake of the last financial crisis. Interest rates plummeted after the dot.com boom and bust, followed by the attacks on the World Trade Center. ThisRead MoreThe Big Short1293 Words   |  6 Pagesswaps on subprime mortgage bonds, CDO’s, and the eventual collapse of the subprime market. Following the subprime mortgage crisis, the Department of the Treasury released a new regulatory plan, The Department of the Treasury Blueprint for a Modernized Financial Regulatory Structure, which is referred to as â€Å"the Paulson Plan.† The Paulson Plan was completed in March 2008 and consisted of a series of short-term and intermediate-term recommendations that were meant to immediately improve and reformRead MoreThe Great Recession and The Dodd-Frank Act1177 Words   |  5 Pagesa response to the Great Recession in order to prevent potential financial debacle in the future. This regulation has a significant impact on American financial services industry by placing major changes on the financial regulation and agencies since the Great Depression. This paper examines the history and impact of Dodd-Frank Act on American financial services industry. The world’s financial system was almost brought down in 2008 by the collapse of Lehman Brothers that was a major internationalRead MoreThe Sarbanes Oxley Act ( Sox ) Essay1233 Words   |  5 Pagesto Pompper (2014), â€Å"incidents of high-profile deception over the past† four decades â€Å"have threatened the reputation of the †¦ accounting function† (p. 131). For instance, an investigation was conducted into the financial audit and reporting process after the savings and loan banking crisis in the 1980s (Pompper, 2014). In addition, the criminal convictions of executives and bankruptcies of Fortune 500 companies such as Enron and WorldCom in the turn of the century motivated Congress to pass the Sarbanes-OxleyRead MoreTopic 6 – Bailouts And Buyouts. I Would Like To Start With749 Words   |  3 Pagesbeginning of the book Bailout nation, Barry Ritholtz discusses key factors that led to the 2008 Housing Market Bubble Burst and reforms about what s hould be done. The first point is to (1) repeal the Commodity Futures Modernization Act (CFMA) of 2000. Credit default swaps and collateralized debt obligations were exempted from regular oversight. He mentions that all derivatives should be regulated as any financial securities out there in the market. (2) The Nationally Recognized Statistical Rating OrganizationsRead MoreThe Subprime Mortgage Crisis Of 2008 Impacted The Us1581 Words   |  7 PagesMortgage Crisis of 2008 impacted the US According to data from the United States Census Bureau: 501 thousand new single-family houses were sold in 2015 compare to 1,051 thousand in 2006. Real estate always impacted the economy by creating jobs and housing opportunities for families. But around 2006 because of a shortage of homebuyer, the nation saw an increase in the number of mortgage credits and subprime loans granted which lead to the 2008 subprime mortgage crisis, a nation wide banking crisis, puttingRead MoreThe Madoff Scandal1070 Words   |  5 PagesThe Madoff scandal 16 December 2008 The repercussions from the collapse of Bernard L. Madoff Investment Securities LLC, whose founder and owner was arrested last Thursday after admitting that his $17 billion investment advisory business was a giant Ponzi scheme, continue to widen. According to a criminal complaint filed by the FBI and a civil action brought by the Securities and Exchange Commission (SEC), the elderly Madoff estimated that the losses from his fraud exceeded $50 billion. TheRead MoreIfrs Adoption Challenges : Ifrs755 Words   |  4 Pagesadoption would sacrifice the â€Å"gold standard† of U.S. GAAP, and a lack of enforcement. The SEC drafted its new strategic plan for the next 4 years in February 2014. In doing so, it appeared to be backing away from its earlier plan to support IFRS (Chasan, 2014). This becomes evident by contrasting the SEC’s 2010-2015 plan with its new plan. The 2010-2015 plan reads: The agency will promote high-quality financial reporting worldwide through, among other things, support for a single set of high-quality