Khuzami leaving SEC, led post-crisis enforcement

AP News

1/9/2013 1:55:46 PM - AP News

WASHINGTON (AP) — Robert Khuzami is leaving the Securities and Exchange Commission after leading the agency's efforts to penalize the nation's largest banks for actions that triggered the 2008 financial crisis.

Khuzami was named enforcement director in February 2009, just months after the crisis peaked. In his four years at the helm, he spearheaded investigations that accused banks of misleading investors about risky mortgage securities.

His efforts drew large SEC settlements. Goldman Sachs agreed in July 2010 to pay $550 million to settle civil fraud charges. Similar deals followed with Citigroup, JPMorgan Chase and others.

Critics have said the penalties were a small compared with the banks' revenue and no senior executives were held accountable.

Khuzami is stepping down within a month of former SEC Chairman Mary Schapiro's departure from the agency.