Prof. Painter Quoted in NYT on Securities Law

Professor Richard Painter was quoted in an article in the New York Times reporting that the Securities and Exchange Commission is avoiding tough sanctions for large banks in securities fraud cases. Many of the cases involve banks that allegedly misled investors in securities they underwrote for clients, and the banks were allowed to escape SEC restrictions ordinarily imposed on issuers that enter into consent decrees in fraud cases. Painter told the New York Times that he did not agree with the argument that a bank accused of misleading investors in a securities transaction for a client is not also likely to mislead investors about its own securities.