Swap Dealers Eye Relief in SEC Policy Curbing Bank Penalty Scope
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The U.S. Securities and Exchange Commission proposed a way for banks to shield their derivatives businesses from disruption triggered by enforcement actions, reprising a long-running fight over how severely the agency should punish Wall Street firms accused of wrongdoing.
The SEC voted 3 to 2 Wednesday to issue a policy that outlines how banks can avoid collateral damage for their derivatives businesses when unrelated units or employees face sanctions.