Trump 2.0 "Turns the World of White-Collar Enforcement Upside Down"

Trump Administration Upends Prosecution of White-Collar Crime

The SEC then dropped its civil fraud lawsuits against Milton, Watson and other defendants who received clemency from Trump. Those lawsuits could have recouped funds for investors if the commission had won at trial.

The SEC’s lawyers dismissed the cases because they didn’t want to be seen as contradicting Trump’s view of justice, according to attorneys involved in the negotiations.

The commission is typically the most active white-collar enforcer in the federal government. But its ranks have been significantly depleted by attrition, and its new leadership is less interested in bringing high-dollar enforcement actions against big public companies.

The SEC under the Trump administration brought four enforcement actions in nine months against public companies, according to data from Cornerstone Research. The agency brought 52 enforcement actions against public companies during the prior three months, when it was under the Biden administration.

SEC Chairman Paul Atkins said in October that regulators should be measured in how they use their enforcement power. “If we reward the staff only for bringing enforcement actions, then we have discouraged the staff from determining not to recommend an enforcement action,” he said.

Trump’s Wall Street Regulators Set to Enter Rare GOP-Only Era

The two agencies most responsible for policing Wall Street will start the new year with only Republicans at the helm, marking the rare return of single-party dominance that is likely to endure as the regulators confront thorny new policy questions.

At the Securities and Exchange Commission, responsible for protecting investors in US stock markets, the sole remaining Democratic commissioner, Caroline Crenshaw, is set to depart after her term ends Jan. 3.

The SEC’s smaller sister agency, the Commodity Futures Trading Commission, will have only one person at the top—newly confirmed incoming Chairman Michael Selig—after acting Chairman Caroline Pham, a fellow Republican, left to join crypto payments company MoonPay.

Federal law says the agencies, designed to function with some political independence from the White House, can’t have more than three out of five commissioners from the same party. Presidents typically put forward nominees recommended by the opposing party to fill the other seats.

But there’s nothing stopping President Donald Trump from leaving the Democratic spots unfilled and further cementing his grip over Wall Street’s watchdogs….

JPMorgan says Javice firms billed millions just for ‘attendance’

JPMorgan Chase & Co. said Charlie Javice’s “unconscionable” $74 million tab for legal fees included more than $5 million in charges for lawyers and other staff just for attending her fraud trial, even on days court wasn’t in session.

A previously sealed Delaware court filing released Monday offered the most detailed picture yet of JPMorgan’s claim that Javice, who was convicted in March of defrauding the largest US bank in a $175 million deal, abused a 2023 order requiring it to cover the costs of her defense.

JPMorgan is seeking to avoid $10.2 million in disputed charges and end the requirement that it pay future bills. Lawyers at Javice’s five law firms billed unnecessary work and inappropriate expenses under the mindset that “someone else is paying her bills,” according to the filing.

The dispute has raised the question of how much is too much for a top-flight criminal defense. Javice’s costs have been much higher than the $30 million in bills Theranos Inc. founder Elizabeth Holmes amassed in her defense.

Warren Buffett retires as Berkshire Hathaway CEO

After 55 years, it’s Warren Buffett’s last day as chief executive of investing juggernaut Berkshire Hathaway.

The 95-year-old, often referred to as the “Oracle of Omaha” and the “billionaire next door,” will relinquish the title after a career that saw him turn a failing textile firm into one of the most successful asset managers in the world.

Greg Abel, the 63-year-old lesser-known CEO of Berkshire’s energy business, will take the helm of the conglomerate on Thursday. Buffett will remain its chairman.

Coinbase Escalates Crypto Campaign Against California Regulator

Cryptocurrency giant Coinbase Global Inc. is ramping up pressure to get California to drop its lawsuit against the company so it can resume its rewards program, which has been paused since 2023.

The cryptocurrency exchange began an advocacy campaign in the final weeks of December by recruiting its users to ask a California regulator to stop its “ban” on staking. The practice lets customers earn crypto in exchange for locking their assets into a blockchain network to support its operations. Consumer groups contend companies need greater oversight because of the risks involved.