SEC announced on twitter that they “charged Chicago-based Loop Capital Markets, LLC for providing advice to a municipal entity without registering as a municipal advisor. The action marks the first time the SEC has charged a broker-dealer for violating the municipal advisor registration rule.” (Source SECGov twitter)
The SEC seems to be very focused on fighting crime and violations lately. They have been more active as of late on twitter and it seems like for whatever reason it might be, the SEC is coming down on those who choose to break the rules.
LOOP CAPITAL CHARGED BY SEC
As seen in the immediate press release form the SEC’s website, the SEC has charged Loop Capital for violating municipal advisor registration rule. In the filing it says “According to the SEC’s order, between September 2017 and February 2019, Loop Capital advised a Midwestern city to purchase particular fixed income securities, which the city purchased using the proceeds of its own municipal bond issuances. In addition, the Commission’s order found that Loop Capital did not maintain a system reasonably designed to supervise its municipal securities activities and had inadequate procedures, including insufficient methods to identify potential violations of the municipal advisor registration rules.” (Source sec gov/news/press-release/2022-163)
U.S. JUSTICE DEPT. LAUNCHES NEW SHORT SELLING PROBE
This crackdown seems to once again be happening congruent with other regulators showing force against criminals. Recently we reported that subpoenas to some short sellers have been sent out as of recently involving trading information connected to companies like Amazon Microsoft and others Bloomberg reported today.
Could this be the start of a bigger crackdown on wall street? Only time will tell, but it feels like the tide might be turning.