The SEC is coming under pressure to start using powers which would enable it to stop banks from issuing stocks and bonds without specific approval. The SEC could ban the banks from managing mutual funds and from working with private companies to find investors. These clauses have been largely ignored since they the SEC was created during the 1930s Depression. One of the waivers - letting banks continue to issue securities - has been used 30 times since 2010. 

Negative effect

Jon Eisenberg,  partner at K&L Gates, said: ‘Until recently, the waiver issues were never viewed as the least bit controversial.’ Use of these penalties could have a highly negative effect on a bank's business and reputation. Source: Salon