The push continues to allow public companies to ban shareholders from suing for fraud. You can read my story for The Intercept here.
Author Archives: Susan
Sabew honorable mention for investigative reporting
I was honored to hear today that The Society for Advancing Business Editing and Writing, known as Sabew, awarded me an honorable mention in its “Best in Business” competition in the investigative reporting category. My story, “Finra’s Black Hole,” looked at 30 years of brokerage industry arbitration records to see how women fared when they filed complaints about sexual harassment and gender discrimination. (Answer: Not very well). You can read my story here.
States begin to crack down on broker abuse as the SEC dithers
Federal regulators are letting brokers get off easy when it comes to serving clients’ best interest. So individual states are stepping in to counter the lax federal regulation. I wrote about it today in a story for The Intercept.
Sexism on Wall Street: New Chapter, Same Book
Securities attorney Bill Singer today on sexual harassment on Wall Street.
Entire Industries Are Being Blacklisted By Insurers Over #MeToo Liability
#MeToo is getting expensive for the insurance companies who issue policies to errant companies. I wrote about it today in this piece for The Intercept.
When #MeToo Investigations Go Wrong
I looked into the internal investigations that companies do when employees complain about sexual harassment and other workplace inequities. You can read the piece in The New York Times here.
Google and Facebook ended mandatory arbitration for sexual harassment claims. Will workers outside the tech industry benefit?
Seven days after the Nov. 1 walkout of 20,000 Google workers outraged over a NY Times investigation of the company’s lenient treatment of sexual harassers, Google said it would make arbitration optional for sexual harassment claims. I wrote about it today for The Intercept. You can read my story here.
Wall Street Moves to Gut Post-Crisis Financial Rules
ON THE CAMPAIGN trail, Donald Trump frequently pledged to “dismantle” the Dodd-Frank financial reforms passed in the wake of the 2008 financial crisis. On Wednesday, with the Federal Reserve’s release of a proposal to roll back capital and liquidity requirements, he caught his big whale. You can read my story for The Intercept here.
My radio interview with Robin Morgan on my investigation of “FINRA’s Black Hole”
I was on Women’s Media Center Live with Robin Morgan today, talking about my investigation of 30 years of of sexual harassment complaints by women on Wall Street. You can listen to the interview here.
Small investors are prey, again, for the Wolves of Wall Street
My op-ed, published today in The New York Times, talks about the increasing vulnerability of small investors 10 years after the financial crisis. You can read it here.
Will Shareholders Lose the Right to Sue Over Corporate Fraud?
Earlier this month, Securities and Exchange Commissioner Hester Peirce told Politico that she “absolutely” thinks that public companies should have the option to require arbitration, which would strip shareholders of their right to bring lawsuits like the one Kacouris filed. The comments by Peirce, a Donald Trump nominee who took office in January, amplified previous remarks by other SEC officials. Commissioner Michael Piwowar, for example, who departed his post in July, told an audience at the conservative Heritage Foundation last year that he would “encourage” companies to come talk to the SEC about putting mandatory arbitration clauses in their charters.
Read more about this in my story today in The Intercept.
In 30 Years, Only 17 Women Won Sexual Harassment Claims Before Wall Street’s Oversight Boday
For victims of sexual harassment on Wall Street, the case of Kathleen Mary O’Brien was a bad omen.
In 1988, O’Brien, then a stockbroker at Dean Witter Reynolds, filed the earliest sexual harassment case we could find in a public database maintained by the Financial Industry Regulatory Authority, Wall Street’s self-governing organization, which is overseen by the Securities and Exchange Commission.
The year before, O’Brien had sued Dean Witter in Los Angeles Superior Court, but the brokerage firm successfully argued that she was legally bound to use Wall Street’s closed-door arbitration forum, then run by a FINRA predecessor, the National Association of Securities Dealers. The arbitrators’ decision in her case would turn out to be a common one in harassment cases over the following years: The claim was dismissed. The panel, offering no explanation as to how it came to the decision, charged her $3,000 in arbitration fees.
O’Brien’s case is one of 98 sexual harassment or hostile work environment claims and counterclaims made by women that The Intercept and the Investigative Fund found in the FINRA database over the past 30 years. You can read the full story here.
Under Trump’s SEC, Wall Street Secrecy Expands as Enforcement Shrinks
Jay Clayton, Donald Trump’s choice to run the Securities and Exchange Commission, is a man Wall Street itself might have picked to run its most important federal regulator. Except for two years clerking for a federal judge after graduating law school, he has worked his entire adult life at Sullivan & Cromwell, an elite law firm based in downtown Manhattan that includes many of the country’s largest publicly traded companies as clients.
Enforcement cases and fines have gone down since Clayton was sworn in last May, and the SEC has given Wall Street and corporate America any number of gifts, including the easing of public company disclosure requirements that some experts consider key for investors looking to understand a company. My colleague Gary Rivlin and I wrote about Clayton’s SEC for The Intercept. You can read our story here.
How Wall Street Silences Women
Among the business sectors largely absent from the current deluge of sexual harassment revelations is the financial services industry, a behemoth that employs 3.2 million people in the United States and is infamous for abuse and discrimination targeting women. In my story for The Intercept, I talk about women’s fate in finance and the reasons that most stay quiet. You can read it here.
Wall Street Wants to Kill the Agency Protecting Americans From Financial Scams
Donald Trump promised he would “do a number” on financial regulations, and it looks like he may finally get his wish fulfilled at the Consumer Financial Protection Bureau. The agency, created by Dodd-Frank, has returned $11.9 billion to 29 million consumers in its short 5 1/2 year history.
Wall Street’s well-paid surrogates in Congress have been beating up the CFPB and its director, Richard Cordray, at every opportunity. But the CFPB nonetheless carried on with its task of cracking down on sleazy payday lenders and sneaky banks that charged for services that customers never got. Now, though, Cordray has said he’s resigning at the end of the month, giving Trump a chance to replace him. The president’s temporary pick, White House budget director Mick Mulvaney, once said “I don’t like the fact that the CFPB exists.” You get the idea.
Gary Rivlin and I took a look at the agency’s accomplishments — and at its foes well-funded attacks — in a piece for The Intercept. You can read it here.
What Hollywood Could Learn from Wall Street’s Sexual-Harassment Reckoning
I spoke with The New Yorker about Wall Street, Hollywood, and the cycles of public interest in sexual harassment cases.
What Hollywood Could Learn from Wall Street’s Sexual-Harassment Reckoning
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For those wondering how the current wave of accusations might translate into lasting change and improvements for professional women, Wall Street’s history is instructive.
Wall Street and high-tech sex harassment scandals offer a lesson for Hollywood: Change won’t happen quickly
Michael Hiltzik spoke with me for his story about the Harvey Weinstein sexual harassment scandal. You can read it here.
