91 Texas L. Rev. 419
In this Note, Mr. MacDonald argues that the Securities and Exchange Commission must structurally rethink the way it enforces securities laws because the current system is radically inadequate. Part II discusses the history of this system. Part III details the incentives behind the settlement regime, and Part IV documents its rabid and uncompromising failures on both a theoretical and empirical level. Part V suggests two solutions bringing more cases to trial and imposing individual, rather than corporate, liability as methods for bringing securities laws enforcement back to deterrence equilibrium, where the harm of violating the laws actually compares to the expected costs of those violations. Ross MacDonald argues that only at such an equilibrium can the public reasonably expect to see the number of financial frauds decrease to an acceptable level.