Divided SEC Paves Way for Securities Class Action Curbs

Also, Senate probe highlights KPMG audits of failed banks; Powell defends Fed independence

In a contentious meeting this morning, the SEC approved a “policy statement” that allows companies to curb securities class action lawsuits. The move paves the way for broader use of mandatory arbitration clauses, fulfilling a longtime goal of corporate executives frustrated by the reach of trial lawyers.

The shift drew an impassioned and lengthy dissent…