The Many Ways Trump Is Kneecapping White-Collar Crime Enforcement

Donald Trump's administration has been quietly de-emphasizing enforcement of white-collar crimes, making it easier for corporate wrongdoing to go unchecked. This shift has been observed across multiple federal agencies responsible for financial crime oversight, such as the Securities and Exchange Commission and the Justice Department.

In recent months, the SEC has brought fewer new enforcement actions, with a private-sector analysis revealing the lowest number of cases initiated in over a decade. Senators have expressed concern over the decline in SEC enforcement, citing a director's abrupt resignation and a 17% staffing reduction in the agency's enforcement division.

The SEC's budget has also been cut, further exacerbating the problem. The administration has continued to find new ways to avoid punishing corporate misconduct. For instance, it temporarily paused enforcement of the Foreign Corrupt Practices Act, arguing it was harming American businesses. Additionally, the SEC has proposed scrapping rules that prevent private equity firms from buying access to pension funds and an 84-year-old rule that requires shareholder concerns to be disclosed in public filings.

The Justice Department has also revamped its approach to corporate crime, consolidating divisions and shifting focus to healthcare fraud, trade fraud, tax evasion, and fraud against the government. Experts warn that such trends could lead to a rise in corporate fraud or even a broader financial crisis in the long term.