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 January 20.

Why the inside-trading crackdown misses the mark

Alain Sherter, MoneyWatch

Hear, hear. Insider trading is theft, usually of information. It is a way of rigging the game, and it undermines confidence in the financial system. But why is there no relentless pursuit of executives who took part in what amounts to a far bigger conspiracy — knowingly selling billions of dollars in fraudulent mortgage loans and securities? Instead, the feds have repeatedly opted against prosecuting individuals implicated in these crimes in favor of limp legal settlements that history shows have no deterrent effect, let alone a whiff of justice.

Dutch Court Holds Collective Securities Settlement to Be Binding 

Kevin LaCroix, The D&O Diary

On January 17, 2012, in a development with important implications for the evolution of post-Morrison remedies for non-U.S. investors, a Dutch court has held for the first time that a collective securities settlement is legally binding. Of even greater significance, the decision arose in a circumstance where none of the liable parties and few of the claimants were domiciled in the Netherlands. The court's action suggests the possibility of a potentially important mechanism for aggrieved investors who bought shares outside the U.S. to obtain compensation.

In S.E.C.'s Actions, a Hint at a Tougher Stance

Peter J. Henning, DealBook

Rejecting the proposed settlement with Mr. Barasch and requiring admissions in a small number of cases are certainly baby steps, and may be little more than aberrations. But they could indicate that the S.E.C. understands how important perceptions can be, and intends to take a tougher stance in resolving cases.

The FBI Agent Who 'Flips' Insider-Trading Witnesses

Susan Pulliam, Michael Rothfeld and Jenny Strasburg, The Wall Street Journal

Mr. Makol's tactics typically involve approaching his subjects during their regular daily routines, according to people familiar with his methods. After collecting personal tidbits about his target—a wife's name, or how many packs of sugar he takes in his coffee—he tries to persuade the person that the government already knows so much that there is little choice but to cooperate.