SEC Takes Light-Touch Approach Against Lawbreakers, Critics Say

The nation's fourth-largest bank agreed to pay an $11 million fine this week to settle federal charges that it misled investors by hiding critical facts and charging them excessive prices on portions of two billion-dollar securities during the height of the housing boom.

Or put another way: For $11 million, one of the world's biggest investment firms was able to violate basic investor protection rules, defraud its customers, not admit wrongdoing, avoid a trial and likely pocket the profit off similar deals.

The investors lost millions. The firm pocketed millions more in profit, more than offsetting the fine.