BulletProofBlog the blog on crisis communications

The U.S. Securities and Exchange Commission (SEC) reached more settlements in the first quarter of 2009 than it reached in the first or fourth quarters of 2008, respectively. According to a NERA Economic Consulting report, settlements jumped 16 percent between January and March 2009 alone.

Under intense pressure amid the current financial crisis and high-profile scandals such as Bernie Maddoff' s alleged ponzi scheme, the SEC is making it known that there is a new sheriff in town. Chairman Mary Schapiro has made several key changes to the SEC Enforcement Division that - in part - likely account for the increase in settlements and - more important - send a powerful, no-nonsense message to all market participants.

But Schapiro is also doing something far more valuable and empowering. She is showcasing high-profile message cases to make her point.

The SEC is demonstrating its commitment to active enforcement and dissuading others from committing future crimes via the current uptick in settlements. As weak economic times tend to reveal misconduct, the SEC is acting more boldly than in recent memory. That means companies facing the Commission have a clear choice - cooperate and settle as quickly as possible, or find themselves at the center of unwanted and unprecedented media scrutiny.

The SEC presses and publicizes message cases not only to keep companies on the straight and narrow, but to help restore much-needed investor confidence to the marketplace. These are the Commission' s key goals moving forward. And from all that is evident in the first quarter of 2009, the SEC is moving full steam ahead.