WALL Street has hit an unexpected stumbling block in its efforts to move beyond government enforcement actions.
Even after admitting to fraud or pleading guilty to a crime, banks have routinely been granted special exemptions by US regulators that allow them to keep managing billions of dollars in pension assets and issue securities. Now, the Labor Department and Securities and Exchange Commission (SEC) are re-evaluating their policies on waivers, leaving some of the world's biggest banks in limbo.
Credit Suisse Group AG is the latest to feel the pressure. The Labor Department said on Friday it will hold a public hearing on Jan 15 to determine whether the bank deserves an exemption to keep...