GAO asked to investigate SEC enforcement division after fines plummet Deirdre Jurand at 6:18 PM ET
[JURIST] US senators Jack Reed (D-RI) and Christopher Dodd (D-CT) have asked the Government Accountability Office (GAO) [official website] to investigate the enforcement division of the Securities and Exchange Commission (SEC) [official website] after learning that the number of fines ordered by the SEC dropped by more than half [Bloomberg report] from fiscal year 2006 to 2007, Reed said Tuesday. The GAO issued an initial report [PDF text] on the fines plummet in November after Senator Chuck Grassley (R-IA) [official website] requested an investigation, and a Tuesday GAO report [PDF text; summary] found that problems named in the November report regarding the SEC's internal controls had gone largely unaddressed. The Financial Times has more.
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