S-E-C: 12 Investigations Launched!

The SEC probe is much larger than just Bear Stearns:

"The Securities and Exchange Commission has launched about a dozen investigations related to securities backed by sub-prime mortgages, SEC Chairman Christopher Cox said Tuesday."

Twelve investigations is a lot and it helps to prove the point I made earlier in the week: the subprime CDO fiasco is going to be MUCH larger than most expect.

"Thus far in 2007, he said, the SEC has imposed fines in nine cases. The agency's record for cases with fines imposed in an entire year is 11."

I can't see how this year won't be a record-breaker. There's still six months of subprime unwind and defaults are on the rise. Plus, the SEC is defending itself against accusations that the commission favors business. Regardless of whether the accusations are true, the fact that they exist means there's a good chance the SEC will be unfavorable to business.