Congress to Examine S.E.C. Settlement Policy

The Securities and Exchange Commission's practice of settling cases while allowing corporations or other defendants to neither admit nor deny the charges will be the subject of a hearing early next year by the House Financial Services Committee.

The committee chairman, Representative Spencer Bachus, Republican of Alabama, said Friday that "the S.E.C.'s practice of using ‘no-contest settlements' has raised concerns about accountability and transparency." He said the hearings were supported by both Republican and Democratic lawmakers.