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The SEC's mandate is to enforce the accuracy of financial disclosures. It's not their mandate to ensure that a business model is appropriate. Only that it is tr
by maxbond 3y ago
The SEC's mandate is to enforce the accuracy of financial disclosures. It's not their mandate to ensure that a business model is appropriate. Only that it is transparent to investors.
From their perspective, it would be management, investors, and the FAA who had the responsibility to ensure Boeing was behaving appropriately.
- dheera 3y agoWell their perspective causes accidents. Financial disclosure is NOT more important than safety. Even if it involves all kinds of financial non-transparency and even financial crimes to ensure that lives are safe, at the impact of Wall Street billionaires' profits, I'm in support of it. I'd like to get to my destination alive. If a plane can be made twice as safe, I'll buy Boeing stock at twice the price. Then when the plane is 3X as safe I'll sell it at 3X the price. Their financials don't matter to me. As a non-billionaire without a private jet, safety is how I "value" a transportation company.
- maxbond 3y agoI'm not saying financial disclosure is more important than safety (and I certainly don't believe that), I'm saying their bailiwick ends and making sure the financials are reported accurately. It's like blaming the referee because a player dropped the ball, they're not responsible for making good decisions based on that information, they're responsible for making sure we have the information we need to make good decisions. Which is not to say they're even doing a good job at that, just that this particular thing isn't on them. It's not like they're being accused of cooking the books. I didn't see a charge in the article, but I would assume they're being investigated for negligence.