There is something odd about the strategy of the SEC’s settlement of charges related to Abacus.

They had four possible strategies:

1. Keep charges against the employee, keep charges against the firm.

SEC might lose and look stupid.

2. Settle with the employee, settle with the firm, let them both go back to work.

Sounds sensible to save face if you think they can’t win.

3. Settle with the employee, keep charges against the firm.

A common strategy: going easy on small fish to go after bigger ones.

4. Keep charges against the individual, settle with the firm and let them get back to work.

What’s their rationale here? Picking on someone your own size?