Dodd-Frank beginning to show results

Wall Street Regulator Ramps Up Enforcement

By BEN PROTESS, NYT

Wall Street's smallest watchdog is starting to show its fangs.

The Commodity Futures Trading Commission, once considered a toothless regulator, brought a record number of enforcement cases over the past year, as fines soared. In a statement on Friday, the agency said it levied $585 million in sanctions during its 2012 fiscal year, which ended Sept. 30, up from $450 million the year before.

The surge in fines is largely tied to one case. In June, the British bank Barclays agreed to pay $200 million to the agency for trying to manipulating a crucial interest rate.

"We pursue unlawful conduct to protect market participants and promote market integrity," David Meister, the agency's enforcement chief, said in a statement.

Under Mr. Meister, the agency's enforcement unit has been revamped. It won broad new powers from the Dodd-Frank act, the regulatory overhaul law passed after the financial crisis, allowing the agency to police the previously unregulated swaps market. The law also lowered the burden of proof in court, making it easier to bring cases.

(More here.)