Kara Stein is a relatively new SEC Commissioner. But she's stirred up the waters a little. She has tried to prevent Bank of America from using a waiver to avoid some of the penalties arising from its $16.7 billion settlement for selling toxic mortgages.
Banks can seek waivers from SEC-imposed penalties. The waivers can ban the bank from managing mutual funds, raising money for private companies, or from issuing its own shares or bonds without SEC approval. Stein is trying to prevent Bank of America from using a waiver.
Surprisingly, these waivers could be given by staff unilaterally; now the commissioners have to sign off on them. It will be interesting to see how this affair winds up.
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