Admissions and Accountability in Civil Enforcement

Whether and when targets of civil enforcement admit wrongdoing has been in and out of the public spotlight since the 2007-2008 financial crisis, when the issue seemed tied up in frustrations that suspected wrongdoers—especially banks and corporations—were getting off too lightly.  And the Securities and Exchange Commission has been at the heart of the debate.  Its policy of allowing targets to settle without admitting they did anything wrong prompted judicial rebukes, a public debate, and ultimately an announced policy change in 2013.  Admissions would be required when they furthered “public accountability” and “acceptance of responsibility.”  The decision to ask for … Read more