Broken Windows Policy – The Underlying Rationale
The term “broken windows” comes from an eponymous 1982 article in The Atlantic, which asserted that unaddressed disorder encourages more disorder, followed by more serious crimes.[1] SEC Chairwoman Mary Jo White, who witnessed the transformation of New York City during the period of broken windows policing, took the lesson to heart. On October 9, 2013, at the Securities Enforcement Forum, Ms. White said the same theory could be applied to the securities markets—minor violations that are overlooked or ignored can feed bigger ones, and, perhaps more importantly, can foster a culture where laws are increasingly treated as toothless guidelines.… Read the rest
