Throughout the week over at Securities Docket, I highlight the most interesting columns and blog posts from around the web on the subjects of SEC enforcement and securities litigation. Here is a digest of my picks for the week ending August 6:

In devising punishments, SEC faced with competing interests

Market Cop Blog | Zachary Goldfarb | Aug 6, 2010

Two competing factors have been at play. On the one hand, the agency wants headline-grabbing settlement numbers that send a message that regulators will be tough on companies that do bad things. On the other hand, the agency is cognizant that it's a company's shareholders, who might have been harmed in the first place, who ultimately pay when the agency assesses a fine

The Enforcement Gap

The FCPA Blog | Nancy Z. Boswell and Robert N. Walton | Aug 6, 2010

The numbers speak for themselves, but the underlying question is why, after a dozen years, so many governments that committed to criminalize the use of bribes to get business have failed to live up to that promise. One can only conclude many of them have decided that it is not in their economic interest to do so.... If that means ignoring the Anti-Bribery Convention, so be it.

Vivendi Plaintiffs' Argument on the Impact of Morrison v. National Australia Bank

The D&O Diary | Michael Spencer | Aug 6, 2010

In assessing the so-called extraterritorial scope of Section 10(b), the Court applied the plain language of the statute and found coverage for "transactions in securities listed on domestic exchanges and domestic transactions in other securities." Period. No matter whether the purchaser is foreign or domestic, no matter where the transaction occurred.

A Response to the Vivendi Plaintiffs About Morrison v. National Australia Bank

The D&O Diary | Prof. Richard Painter | Aug 6, 2010

The Morrison holding is inconsistent with a theory that the Court would apply Section 10(b) to any security listed on a U.S. exchange even if the transaction in that security is outside the United States. Indeed, if the Vivendi plaintiff’s counsel were correct, Section 10(b) after Morrison would have a broader extraterritorial reach than ever before.

The First Attack on the Accredited Investor Standard | Compliance Building

Compliance Building | Doug Cornelius | Aug 6, 2010

The definition of accredited investor now excludes the value of the primary residence from the calculation of net worth. Angel investors who poured too much of their wealth into a new swimming pool and cabana may get excluded from future private placements.

Who Pays Citi’s Fines? Its Shareholders

DealBook | Andrew Ross Sorkin | Aug 5, 2010

Still, institutions are nothing more than their constituent parts — individuals who make choices on behalf of the organization. Some of those choices are good and some are bad. When they are very bad, the decision makers should suffer the consequences.

Does It Pay to Cooperate with Regulators?

CFO.com | Sarah Johnson | Aug 3, 2010

A new study finds that it may pay — at least in dollar terms — to help the SEC by sharing results of internal investigations and keeping the public informed when something has gone awry. Rebecca Files, an accounting professor at the University of Texas at Dallas, claims that while cooperating with the SEC increases a company's likelihood of getting sanctioned, being both cooperative and forthcoming in information shared with investors can result in lower penalties.

The FCPA's Long Tentacles

FCPA Professor | Mike Koehler | Aug 3, 2010

There are numerous reasons to comply with the Foreign Corrupt Practices Act. One reason is that mere existence of an FCPA inquiry can significantly throw a wrench into a company's ability to sell itself. Another reason is that mere existence of an FCPA inquiry can cause an analyst to downgrade a company's stock.