CCTV – The hedge fund industry has been in the limelight recently—for all the wrong reasons. In a landmark deal, hedge fund billionaire Phil Falcone admitted he improperly used investor funds to pay his personal taxes in his settlement with the U.S. Securities and Exchange Commission. To settle cases, the SEC used to let defendants accept penalties without admitting or denying wrongdoing. The SEC is now taking a tougher stance on securities settlements.
Since the financial crash of 2008, Wall Street has been trying to shake a broad public perception that it’s corrupt. The government regulator in charge of doing something about it – the U.S. Securities and Exchanges Commission – has been trying to rehabilitate its reputation for being outwitted by Wall Street, or worse, “captured” by it.