U.S. neo-liberal financial regulatory path behind the failure of (the) - U.S. securities regulators to defeat the legal and political perspective of the causes of Analysis

Keywords: regulatory failure / anti-regulatory myths / risk aversion / trickery of the dispute / revolving door effect / "frozen period" rules

Summary: July 21, 2010, known as the American "Great Depression" has been the most severe financial reform bill - <<Dodd - Frank Wall Street Reform and Consumer Protection Act>>, signed by President Obama into effect after it marked the opening of the United States since pArted ways with the neo-liberal path of financial regulation. U.S. regulators to tighten sharply scale, the reason can be lost in the SEC's supervision of securities markets to find some shadow. draw SEC supervisory failures, China's securities regulators need out of the only "America" ​​myth of Marxism, keep control of the base value, improve the "frozen period" rules to reduce erosion of nepotism on regulatory performance, discipline and supervision of the rational allocation of resources to alleviate the negative trend of Law enforcement stretched .



Fourth, the erosion of regulatory power struggle between surgery and the operational capacity of the regulatory resources

The SEC enforcement cases and the number of sought-after collection of fine, its many inadequacies to the obvious, but hidden in the custody of the market after the surgery dispute, over the years but to an invisible, cumulatively harm the market.

(I avoid the risk of dilution of the legal culture of technical regulation

Over the years, the legal profession dominated SEC. In the past 30 years, 44 was appointed SEC chairman (including Vice-staff, 38 people with a Law degree while in the past 10 years, was appointed SEC chairman (including Vice-Chairman) The only two non-legal people, that William H. Donaldson (William H. Donaldson, and Xin Xiya A. Glassman (Cynthia A. Glassman. Currently, all five SEC members (including the Chairman and Vice-Presidents the legal profession [1]

The legal profession dominated the SEC direct consequence of the legal culture filled under the SEC, too much emphasis on decision-making process, with pArticular emphasis on the design of design SEC exemption, and, because of the legal profession on the technical details of the financial markets do not understand, SEC officials, including the exclusion of professional and technical workers heArt to be enough respect. With the growing complexity of financial instruments, SEC's understanding of the financial markets even more stretched. For example, Harry Make Bo Ross (Harry Markopolos repeatedly SEC reporting, trying to make the latter early on Madoff Ponzi scheme to take action, but without success. Harry Make Bo Ross and later testimony before Congress denounced SEC, said the "SEC action is too slow" and "SEC in The legal profession too, have relevant industry experience and expertise of the little people in the Law under those constraints, SEC does not understand the warning signal for the market will not do arithmetic, do not know the 21st century, complex financial instruments, that case the value of billions of fraud crimes, with the silver tray to the front of them, they can not see it. "[2]

Overall, SEC trapped in the complicated case of the internal review process, according to <<Government Accountability Office>> (Government AccountabilityOffice, GAO's report, according to the SEC's enforcement staff, and they must spend 30% -40% of the time the internal review process, which makes them difficult to investigate in a timely manner. more Law enforcement officers that the detailed review process has created risk-averse culture, which aims to eliminate the uncertainty brought about insecurity, but the objective to promote an investigation or to give incentive to reduce the scope of investigation by Law enforcement personnel would prefer to stop some of the investigations, in conjunction with other depArtments do not want to go through the review process, in other cases, law enforcement officers to give up or cut the charges, or law enforcement personnel must spend 2 ½ months to prepare the text, the length of time-consuming, so that they can not recall the details of the early evidence in another case, the commitment of companies under investigation are willing to pay a fine of any amount, but after a lapse of 5 months, the problem is not resolved, because the tenth draft of law enforcement files are changed in such a context, some law enforcement officials complain that such a delay is tantamount to encouraging illegal [3]

(B to seek after the regulatory interests of the "revolving door effect" damage the supervision

Between the SEC and Wall Street, there is a revolving door (revolving door, connecting the market regulator and the regulated, this fan the "revolving door" is often used to explain why the SEC survey employees for lack of enthusiasm for the stock market misconduct Wall Street high salaries for SEC employees, especially those burdened with heavy student loans during the pressure of the young employees, has an irresistible attraction, which often serve as a temporary stepping stone SEC [4]

Many employees now have the SEC's focus on maximizing its practice in the legal circles in popularity, leading to the market and the industry to seek an escape route, for example, in recent years, the leadership of SEC enforcement agencies with the industry's most frequent two-way flow [5] data show that, SEC enforcement director in the past 19 either, only Stanley Crespo Kim (Stanley Sporkin was later chosen as the public office, served as CIA general counsel and federal judge. Such nepotism makes about the industry giants are often able to SEC action, for example, Morgan Stanley has successfully limited the company called the SEC's Pequot Capital Management's insider trading investigation of the case [6]

In short, the recent surge in executive pay on Wall Street, the SEC's regulatory incentives, has brought negative effects can not be ignored: First, SEC employees frequently change jobs the industry, making SEC employees due to lack of long-term work experience on complex financial instruments lack the necessary intellectual and regulatory experience, and the second, due to SEC employees of the lack of complex financial instruments, they are cumulative job performance, tend to facilitate settlement of cases, or those who do not need to spend considerable time and energy cases selective enforcement. All these, without exception, the SEC's regulation to reduce the intensity of erosion of regulatory resources to protect investors.

(C ambiguity of the rules to pursue the "turf wars" undermine the regulatory expectations

In accordance with public choice theory, public policy formation is not based on abstract "public interest", but different interest groups struggle and compromise on the one hand, the different financial regulatory agencies inevitably influenced by interest groups within the depArtment (ie, the object of supervision pressure and influence on the other hand, the regulatory body's own regulatory authority and supervision in the fight for resources also has a specific interest demands. Thus, in reality, financial regulators tend to try to maintain their regulation, and actively invade and reduce sphere of influence of other regulatory agencies. This regulatory competition is aptly called "turf wars" (turf war.SEC regulatory sites compete for one of the means to maintain the ambiguity of the rules.

Over the years, between the rules clear and fuzzy, SEC would rather choose the latter, because the fuzzy rules of the SEC to expand the discretion of the case, and, in order to "more, faster, better and cheaper" to solve the problem, without put a lot of energy to investigate and prosecute cases, SEC prefer the way of reconciliation. [7] fuzzy rules are easy to manipulate the SEC In addition, in fact, since the relevant proceedings, confront with the SEC means that high litigation costs If the transaction costs of such litigation is high enough, even the most innocent of the market players will believe that reconciliation in their best interests.

Currently, the U.S. Supreme Court's jurisprudence have always encouraged the referee, and sometimes even require the lower courts in interpreting the law, reliance on administrative regulatory authorities for the interpretation of the law, especially in the interpretation of the administrative supervision of law enforcement authorities have the right laws, the situation is even more so. [8] This means that even if the SEC's interpretation of the law or deliberately vague to expand its site, is also likely to comply with the court, and this, of course, to encourage a defendant agrees to a settlement.

In all proceedings, SEC insider trading cases, law enforcement agencies on a soft spot, the reason is the SEC like those "able to attract the eye of the case," [9] and "A lot of insider trading cases specially designed to meet this requirement." [10 ] Thus, over the years, SEC and do not want to market too much about what constitutes insider trading guidelines and the relevant rules rather vague explanation for its insider trading case to promote the use of reconciliation measures. In general case, SEC and Congress enacted laws, insider transactions are not clearly defined, and rely more on the Court's judicial interpretation. on the SEC enforcement action Research that, "SEC do not want to use their legislative power to clear insider trading regulations, but rather by the discretion to individually solve the case. "[11]

The SEC also tend to interpret the law as far as possible through the expansion of their site, and therefore, the best way is to maintain the status of illegal insider trading in under this rule, company directors, managers, major shareholders, investors or any other professional relative to its counterparties have personal information superiority in the transaction are not to use the advantages which will prosecute the case can easily reach the standard, the SEC has discretion on any trading in securities who profit proceedings. A recent case is the SEC Mark Cuban (Mark Cuban) litigation cases. [12] In that case, a company called Mamma. com listed companies, its largest shareholder is Mark Cuban. The company will finance the transaction, and the transaction will allow the company share price fell sharply. Cuban Although he was the shareholders, but not the company's board members and managers, nor is it the company's employees in the company before the deal, Mark Cuban learned from company executives at the news, sell the stock, thus avoiding losses. SEC sued Cuban, calling from Mamma. com's CEO was informed by the company to sell shares after news of behavior, constitute insider trading.

According to the SEC rules, insider trading, a composition of elements is that the defendants violated their fiduciary duties to the information source [13] In this case, as the issuer of the Mamma. com is the source of information. However, although Mark Cuban companies signed a secret agreement conservative, but the agreement did not limit its trading terms with its I never signed the agreement, the provisions shall not use their pass to their information management. In dismissing the petition of the SEC, the U.S. District Court for the clear view to: commitment to confidentiality is not equivalent to renounce the deal if shareholders can not afford to make the obligation to engage in transactions, the shareholders must "bear does not rely on the information in transaction or not for the personal use of the information the purpose of the obligation. "[14] and because the SEC did not claim that the petition of Mark Cuban promised to give up after the information learned in the transaction, the Court believes that the signing of Mark Cuban The confidentiality agreement does not constitute SEC charges of insider trading basis. [15] should be particularly emphasized that the Court further finds, SEC can not be determined unilaterally Mark Cuban is illegal. The court held that, in 2000 filed with the SEC 10b5 -2 (b (1 rules, "When a person is committed to confidentiality, he would bear the fiduciary duty or obligation of confidentiality", but this provision would "misappropriation theory of liability" simply built on "secrecy" on the basis of on, without requiring confidentiality "and does not use" this information, [16] the Court ruled that SEC can not be identified based on misappropriation theory liable Mark Cuban. In other words, SEC can not be confidentiality agreements between private parties, into shall not engage in private transactions between the main agreement.

From this, on the one hand, in order to expand its regulatory sites, SEC rules, the ambiguity of deliberately seeking to undermine the regulatory expectations of market players, while the other hand, to avoid the regulatory responsibility for the consideration, SEC and other financial regulatory agencies as in "hot potato" in front, have chosen to give up, resulting in a regulatory vacuum.

In recent years, as financial innovation continues to advance, banking, securities and insurance products and services are no longer sharp distinction, both the banking, securities, insurance, property finance, "hybrid" products (hybrid product have been developed, and had become the popular trend, for example, securities firms offer cash accounts and savings accounts also have functions, with securities and insurance features of variable annuities (Variable annuities), which is one example, as the CDO (debt-backed securities, CDS (credit default swaps, financial derivatives such as, in the end by the Federal Reserve, the savings Authority, or the Securities and Exchange Commission to oversee? law does not clear, and because of such financial products, trading structures too complex, regulators fear that the dip the regulatory responsibility, have shied away from things that temporary lack of supervision, which will eventually make a body can not get enough legal authority to be responsible for the entire financial market and financial system risk, the best regulation is often because the meeting coordination and timing for approval and fleeting. The U.S. subprime mortgage crisis, that is, federal and state financial regulatory authorities monitor the implementation of fierce debate over who should control the vacuum left by a typical example.

In short, SEC's turf wars, led to the selective regulation of capital markets, and ultimately damage the regulatory expectations of investors, led to a regulatory disaster.

Five, SEC regulatory failure of the Enlightenment

"Civilization with new and old can benefit, from the same psychological thing this." [17] in global financial markets with this cool hot today, the U.S. SEC's regulatory failure to bring a lot of our inspiration.

(I keep control of the fundamental value: the protection of investors is to promote the healthy development of the market

At the international level, whether the Commission issued an international organization <<Objectives and Principles of Securities Regulation>>, or national regulatory bodies on their responsibilities expression, regarded as a priority to protect the interests of investors, however, bigger capital market share is equivalent to the capital market to enhance the competitiveness of the myth, often deviate from the regulatory authorities to protect investors in this core objective, even in the long run, protect the interests of investors and promoting Economic development are not contradictory. [18] Worse in recent years, the U.S. market incentives and mechanisms of self-belief, the "anti-regulation" rampant thought the U.S. even complained about the U.S. financial sector supervision over, and the "good v." the overall environment so that U.S. companies than any other country in the world companies are more vulnerable to the threat of litigation, thereby reducing market competitiveness.

However, the U.S. capital markets, disaster once again exposed the "Economic man hypothesis" and "efficient market hypothesis" limitations. Proof of the reality of the financial crisis, Greenspan said the financial institutions of self-awareness, self-restraint, self-correcting so-called "great flexibility" is purely wishful ideal vision of market players cognitive limitations, excessive greed, self-deception and fear quickly create market failure in this crisis, the high leverage makes the major investment banks increased risk appetite, profit-driven psychological enhancement, but also the price is expected to fall into the mental game together with Trader generally after 80 young people, there is no stock market crash of personal experience, more likely from wild panic. [19] In this case, regulators must play a role.

U.S. SEC regulatory failure in recent years learned the lessons of its new main Xixiapiluo Ms. recent public remarks, has repeatedly emphasized the need to work to protect the interests of investors as the SEC's "top priority." The declaration of the deeper implication is that U.S. regulators more aware of the crisis through the face of greed and cunning and market regulators do nothing, no matter how done, can only be castles in the air, and, with the vast majority of the early development of the U.S. stock market speculation in the stock market to get rich is different now from the number of U.S. institutional investors in 1930 to less than 10% to 70% now, and stealth is one of many subsequent retail investors. Becoming more and more ordinary people invest in securities of wealth accumulation and pension insurance, the main channel, if handled carelessly, the financial crisis, Economic crisis will evolve into a political crisis. [20]

ROC, for many years, China's securities market in the "development and specification, whichever is first" debates "fog" in the loss forward, going through twists and turns, however, this controversy may be intentionally or unintentionally confused the "supervision" and "control "The difference we should be innovative approach to develop the vision to break the market is not conducive to the development of" control ", but this does not mean that we should break the supervision and regulation." openness, justice and fairness "is the cornerstone and lifeblood of the market Any violation of it can not be ignored and avoided, they should not emphasize it at some stage but ignore it at some stage, otherwise, we will pay a terrible price. to protect investors in securities regulation, as the engine of the aircraft, the bridge at the base of the bridge, even if only 1% of the damage may be, can not people first got on a plane or through the bridge first to say.

On core responsibilities, the China Securities Regulatory Commission should strengthen the supervision responsibility to protect the interests of investors, however, as the state-owned enterprises reform in the context of a structural arrangement, the Commission has to bear in practical work with state-owned enterprises out of this predicament, the development of securities market and maintain market stability of these functions, is a "strict father", is "mother." In this context, the survival brokerage, corporate finance, SOE reform, market development and other pressures have flocked to the Commission in just the right regulatory scale can not not make compromises, one of its manifestations is a regulatory measure of adjustment when the stock market downturn, the Commission seldom make the decision on punishment, one obvious reason is fear of punishment will be a further blow to confidence in the market, while the opposite in the stock market more active period, the securities regulatory authorities will take appropriate measures to increase the intensity of punishment, so that, burdened with the responsibility of the regulatory control of market disciplinary measures, not alienation does not occur, the typical punishment of policy performance is strong, continuity of weak punishment is uneven, and punishment does not follow legal procedures. sports-style-type law enforcement and expedient law enforcement, do not form a system, do not form habits, do not form a culture.

Western jurist Berman in his classic book <<Law and Revolution>> put it: the law must be belief, or non-existent, he emphasized that diffuse and permeate into the flesh market players legal culture from the U.S. SEC recent regulatory failure, the China Securities Regulatory Commission is available lesson: the market punish wrongdoing, protect investors, although will lead to short-term market fluctuations, but in the long run, it must be for the market to win a solid foundation of China's regulatory authorities should greater use of regulatory comments submitted to the court in support of Civil organizations involved in the protection of investors, etc., to the interests of investors defenders appearance, this time of financial crisis, after the outbreak of the Lehman mini-bonds, the report issued by University of Hong Kong recommended, taking into account the complex financial instruments in front of the ordinary investor and as the plaintiff as the defendant's sale of financial instruments between the significant information asymmetry, and ability differences in the burden of proof, the court should consider the related Civil action, do not use defense type program and the use of inquisitorial procedures, and direct the use of financial regulatory authorities to consider enforcement action identified by the facts and evidence of such professional knowledge by regulators to protect investors, the advantages of a positive attitude, worthy of our country learn from the Commission.

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(B perfect "frozen period" rule: reduce the erosion of nepotism on the effects of regulatory performance

As the old saying goes: those who do not seek million when, not to seek a moment, do not seek overall, not to seek a field. On securities regulation is concerned, this so-called "million when" and "global", is on literacy and self-regulators monitoring effort of the investment, which was the source of securities regulation and fundamental.

As mentioned above, the U.S. SEC's "revolving door effect" greatly reduce the regulatory performance, China Securities Regulatory Commission to perform its regulatory responsibilities in facing this same dilemma in theory, regulators and the industry there are tensions within the health, The proper distance is the basis of this relationship is maintained, but because history and the regulators and industry personnel, "two-way flow", China's securities regulatory authorities and industry to a too close contact.

To improve regulatory performance, the system must be considered from the regulators and industry to bridge the relationship between the frequency of negative effects, the regulators are likely to seek "post-regulatory" personal connections, and in the shot when the legislator, affect regulation In 2009 results in November, the Commission issued the "China Securities Regulatory Commission staff Code of Conduct>> Article 26, after separation of staff, within the prescribed period should be avoided to comply with the provisions of China Securities Regulatory Commission shall not object in violation of the provisions in the regulatory office. This "frozen period" rules, which aimed at reducing the impact of nepotism on regulatory performance, however, from the perspective of legal interpretation, regulators, regulatory staff, relatives of the object in office, supervisory staff that is regulated after the company's shareholders in the office, or in association with the regulated companies with companies in situations such as tenure, are not prohibited. therefore, the problem does not lie in this "time limit" to how long is appropriate, but rather the rules are too careless, can easily be elevated and become a dead letter. to achieve the legislative intent, yet tightly woven French China Securities Regulatory Commission, so long arms, in order to reduce nepotism and even diminish the impact of regulatory performance.

(C configuration disciplinary and regulatory resources: law enforcement hard-pressed to ease the negative trend and pattern

U.S. SEC regulatory failure, one of the reasons is that, although law enforcement agencies with a large number of securities law, accounting, and computer expertise, but limited enforcement resources in relation to a wide range of targets to be monitored, always shortage of space, or even often significantly stretched trend , This is the global norm. with the SEC for example, though they have more than 5,000 employees, compared with the industry, both in terms of information or personnel are not dominant, such as Merrill Lynch's history longer than the SEC survival , the senior staff salaries and benefits is much higher than SEC employees, and Merrill Lynch are in many major cities in the world with offices or branches, the SEC only has offices in the United States, and thus on the understanding of the global financial market information , perception of the market in terms of capacity, compared with Merrill Lynch and the SEC are slightly better. therefore SEC has repeatedly asked the U.S. Congress as a pretext to increase the budget.

In this context, from the perspective of law and Economics, it must exist in relation to law enforcement resources of the "optimal number of securities law violations" problem, while the actual situation, the number of China's securities market is far from illegal to achieve "optimal state ", but even despite repeated prohibitions, even to the point where rampant. One important reason is not rational allocation of enforcement resources, leading to abnormal low cost illegal. other words, between securities law and law-abiding differences in costs and benefits, making the securities less than the unit costs of illegal activities engaged in securities law-abiding activities, unit costs, resulting in a securities law-abiding illegal activities on the securities activities of the substitution effect, income effect and the demonstration effect, which is under market economy conditions securities to generate even lawlessness rampant Economic reasons. [21]

Because of this, China is more disciplinary measures must be properly configured and resources to maximize the efficiency of law enforcement, law enforcement resources to maintain the optimal relative to the number of illegal. Specifically, for an illegal act, there is a variety of disciplinary means, such as public censure, warning, fine or both and used, identified as Shichangjinru who ordered closed, etc. due to the different implementation costs of different disciplinary measures, law enforcement must be verified after verification of illegal behavior and to discipline the between the rational allocation of enforcement resources.

For example, lower cost due to the implementation of fines, law enforcement should take stringent (such as the enormous amount of fine form and the lower the probability of a combination of verification, which means that law enforcement even if only to verify a lower penalty to determine the probability (to reduce to verify their costs, but also to achieve an effective deterrent for offenders, because once they are verified, it can be very convenient to implement fines, which can act as a deterrent. On the contrary, due to order the closure of severe disciplinary measures such as the high cost of implementation (often requires the support of other community resources, such as the central bank refinancing and other law enforcement should take less delay discipline (such as the deadline closed, ordered to stop and check the higher the possibility of a combination of verification through a higher probability to "ordered to close" and other harsh disciplinary measures as the "sword of Damocles," just like hanging heart practitioners in the securities, although it is often just keep the.

But China's multi-disciplinary resource allocation but ill-considered place. As a result of the implementation of the lowest cost and often with a fine disciplinary measures, but to little avail, because the abnormal low amount of fines (especially in terms of personal fines, fines companies or individuals is tantamount to being nowhere near enough so that in order to improve the effectiveness of discipline, regulators should be forced to raise fines for illegal verify the probability, however, the end result is a huge investment in law enforcement costs, but did not receive satisfactory results. In fact, the increase in fines and reduce the amount of the cost of checking illegal, but also receive the same effect.

Again, close the broker in order before the regulators should take a lot of time and effort to master the brokerage financial position, operating conditions and other dynamic information, for possible illegal activities, from time to time to "turn off, suspend business for rectification," and so on with threats to to take preventive measures, other words, should improve the verification of input costs and reduce the intensity of punishment, because the use of closed disciplinary measures costly, but the reality is that low cost of verification of investment management, brokerage dynamic information for the master far from comprehensive, and often the last to support brokerage abscess sores bigger and more out of control packets on the occasion, was ordered to shut down, but this time the price is already cheap. [22]

VI Conclusion

Mr. Qi words, "learn from me and live, like me and die", the reason is "too like the kitsch, do not like to deceive, wonderful in between like and not like." [23] Qi old words of wisdom for the legal system of the country's securities market regulatory comparison, Qi quite similar! Securities market regulation in the United States gradually exposed clusters of long-standing abuse of today, our need out of the only "America" ​​myth of doctrine, out of a path of their own securities market regulation.





Notes:
[1] on the SEC from 1934 to the President (including the Deputy Chairman of the complete list, see the SEC Historical Summary of Chairman and Commissioners, http://www.sec.gov/about/sechistoricalsummary.htm.

[2] Markopolos Congressional testimony, http://www. wkrg. com/politics/article/fraud_investigator_blasts_sec/23318/Feb-05-2009_6-46-am, 2009 年 10 月 accessed 18.

[3] See the Government Accountability Office, "Securities and Exchange Commission: Greater Attention Needed to Enhance Communication and Utilization of Resources in the Division of Enforcement", p. 28, March 2009, http://www. gao. gov / new. items/d09358. pdf, 2009 年 10 月 21 Last Visit.

[4] Eric W. Bright, Letter to the Editor, It Isn't Surprising That SEC Missed Madoff's Scam, Wall Street Journal, 2008 年 12 23, No. A12 version.

[5] such as the SEC enforcement director Linda Thompson (Linda Thomsen, after the law firm Davis Polk & Wardwell served, still back in 2009 after the resignation of the original law was working. Linda Thompson's successor Stephen M. Cutler ( Stephen M. Cutler left the SEC soon after served as the CEO of JP Morgan. A similar situation also includes the SEC's enforcement director, Richard W. (Richard Walker, now working Deutsche Bank (Deutsche Bank General Counsel; William R. McLucas (William R. McLucas, now working Wilmer Hale 'securities Head, Owen Bo Laike (Irving Pollack, SEC Division of Enforcement's first director, now at the law firm Fulbright & Jaworski.

[6] http://finance. senate. gov/press/Gpress/2008/prg100708. pdf (stating that SEC officials "conducted themselves in a man-ner that raised serious questions about the impartiality and fairness" of the Pequot investigation.

[7] Donald Langevoort, The SEC and the Madoff Scandal: Three Narratives in Search of a Scandal, 2009 years of manuscripts, http://scholarship. law. georgetown. edu/fwps_papers/116 / #, 2009 年 10 月 20-day visit.

[8] Chevron U. S. A. , Inc. v. Natural Resources Defense Council, Inc. , 467 U. S. 837 (1984, Skidmore v.Swift & Co., 323 U.S.134 (1944.

[9] Supra note [6], at 8.

[10] Supra note [6], at 8.

[11] See Louis Loss, History of SEC Legislative Programs and Suggestions for a Code, 22 Bussiness Law ,795-99 (1967, another may see Donald Langevoort, Seeking Sunlight in Santa Fe's Shadow: The SEC's Strategic Pursuit of Managerial Accountability, 2001 working Paper, at 40, http://papers.ssrn.com/sol3/papers.cfm?abstract_id=265144, 2009 年 10 月 20 Last Visit.

[12] See SEC v. Cuban, Civil Action No. 3:08-CV-2050-D (N.D.Tex.2009 July 17.

[13] Chiarella v. U. S. , 445 U. S. 222 (1980.

[14] Supra note [11].

[15] Supra note [11].

[16] Supra note [11].

[17] Quoted from Harvard Yenching library in a Chinese couplet, written by the late Qing literati Mr. Chen Baochen.

[18] Elizabeth F. Browne, The Tyranny of the Multitude is a Multiplied Tyranny: Is The United States Financial Regulatory Struc-ture Undermining U. S. Competitiveness? 2 Brooklyn Journal of Corporate, Financial & Commerical Law, Spring, 2008, pp. 374-376.

[19] from December 5, 2008 Three senior SEC officials Bruce Karpati, Thomas Biolsi visits Shenzhen Stock Exchange and Robert Fisher's remarks, quoted in Zhang University: "SEC regulatory failures and revelation," upload Zhang Yujun, Xu editor: <<Securities Law Court>> Law Press, 2009 edition, p. 131.

[20] Supra note [19], Zhang Yujun, Xu, p. 131.

[21] See Li Ming, Chang Zhong Ze: "An Economic Analysis of Law Enforcement Securities>> set <<Economic Research>> 2001 7.

[22] For example, in August 2001, Anshan Securities and China Securities Regulatory Commission has been withdrawn. Was to defuse the risk of local small and medium financial institutions pay for the "central bank refinancing", first appeared in the broker's disposal process. The prevailing management judge, such a crisis in high-risk financial institutions and the amount will not be too much, because most brokers have been carried out in 2001 to increase their investment. coupled with the current market "false fire" is still very busy, far from being fully exposed, therefore, regarding a proposed disposal of the risk became the basic ideas, but the state had to bear the financial "managed brokerage" the burden. such a situation on the reproduction of almost once every few years, particularly 2004, 2005, is staggering. See Luopei New: <<Finance brokerage 60 billion could pay for the>> load <<Weekend>> December 2, 2004.

[23] See Wu climbing: "Wall Street financial crisis, legal issues>> set <<Legal>> 2008 12.

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