The SEC settles most of its enforcement cases, and Wall Street firms prefer to pay fines and avoid litigation that would put more heat on executives. But SEC officials under Chair Gary Gensler are seeking higher fines to settle, even if prior offenders paid less. In its suit, the SEC alleged that Virtu had misled its institutional clients by failing to disclose the information-security gap. “While big fines can serve an important purpose, big fines alone on big banks are paid by shareholders and will never be big enough to stop bankers from breaking the law," Better Markets President Dennis Kelleher said. Defense lawyers and some legal scholars said Gensler’s SEC is levying fines beyond historical norms.

Source: Wall Street Journal September 16, 2023 18:02 UTC