4 ms·

While I have a lot of respect for the SEC's increased crackdown on financial wrongdoing such as insider trading, this really seems like a stretch. Considering

While I have a lot of respect for the SEC's increased crackdown on financial wrongdoing such as insider trading, this really seems like a stretch. Considering how quickly "internal" company memos are publicly disseminated, I don't see how a Facebook post to 200K fans can be considered anything but public.

pmorici 14y ago
"While I have a lot of respect for the SEC's increased crackdown on financial wrongdoing" Really? I honestly find it hard to imagine how they could possibly do less in terms of enforcement. There appears to have been huge amounts of fraud going on during both the bubble of the late 90's and the more recent crisis. The the best the SEC has managed is to nab a few people for insider trading.
- shawn-butler 14y ago
  Have they even investigated the selective disclosure that was widely reported to have gone on during the facebook fiasco? Someone should have been charged for that.
  - rayiner 14y ago
    SEC is investigating FB IPO issues.
  - pathy 14y ago
    It still hasn't been very long since Facebook's IPO, I expect investigations like that take longer than a few months. Patience is virtue, especially when dealing with cases like the Facebook IPO.
- ryporter 14y ago
  The SEC could certainly do (much) more, but I'm merely claiming that they seem to be improving. Most of the articles I've read about Mary Schapiro's recent retirement conclude that she left the SEC in a better state than she found it. For example, from [1]: She inherited a mess at the S.E.C. Critics contended that Christopher Cox, her predecessor, left an agency with low morale that was ill-prepared to cope with the financial crisis... Ms. Schapiro directed much of her early attention on the beleaguered enforcement unit... Over the last two years, the unit has filed a record number of actions and brought 129 cases against people and firms tied to the crisis. [1] http://dealbook.nytimes.com/2012/11/26/schapiro-head-of-s-e-c-to-announce-departure/ http://dealbook.nytimes.com/2012/11/26/schapiro-head-of-s-e-...
rayiner 14y ago
I don't think it's so clear cut. What if it was 20,000 big bank analysts? Clearly that would be unfair disclosure. 200,000 Facebook followers? Maybe not, but part of the point of launching an investigation is to gather facts to put that in context.
- ryporter 14y ago
  It would certainly be different if it were restricted to a specific group, but part of the point was that it was not. Given that this wasn't exactly a backroom deal, I have trouble seeing what an investigation could uncover beyond the first hour of fact finding. Plus, the article makes it sound like the SEC has moved beyond the initial fact-gathering stage and is now actively considering filing charges based on what they know.
  - rayiner 14y ago
    Are Facebook followers not a "specific group?" I think that's a bigger question than you're giving credit to. One of the refrains of securities lawyers is: "make your disclosure simple enough for grandma to understand." Because at the end of the day, grandma does have her money in the public markets and the law seeks to protect grandma and not just sophisticated investors. Also, "filing charges" refers to a criminal action. The article says the SEC is considering bringing a civil action. The difference between the two is like the difference between being charged with vehicular manslaughter for driving drunk and getting a citation for parking in a no parking zone.

pmorici 14y ago

"While I have a lot of respect for the SEC's increased crackdown on financial wrongdoing" Really? I honestly find it hard to imagine how they could possibly do less in terms of enforcement. There appears to have been huge amounts of fraud going on during both the bubble of the late 90's and the more recent crisis. The the best the SEC has managed is to nab a few people for insider trading.

shawn-butler 14y ago
Have they even investigated the selective disclosure that was widely reported to have gone on during the facebook fiasco? Someone should have been charged for that.
- rayiner 14y ago
  SEC is investigating FB IPO issues.
- pathy 14y ago
  It still hasn't been very long since Facebook's IPO, I expect investigations like that take longer than a few months. Patience is virtue, especially when dealing with cases like the Facebook IPO.
ryporter 14y ago
The SEC could certainly do (much) more, but I'm merely claiming that they seem to be improving. Most of the articles I've read about Mary Schapiro's recent retirement conclude that she left the SEC in a better state than she found it. For example, from [1]: She inherited a mess at the S.E.C. Critics contended that Christopher Cox, her predecessor, left an agency with low morale that was ill-prepared to cope with the financial crisis... Ms. Schapiro directed much of her early attention on the beleaguered enforcement unit... Over the last two years, the unit has filed a record number of actions and brought 129 cases against people and firms tied to the crisis. [1] http://dealbook.nytimes.com/2012/11/26/schapiro-head-of-s-e-c-to-announce-departure/ http://dealbook.nytimes.com/2012/11/26/schapiro-head-of-s-e-...

rayiner 14y ago

I don't think it's so clear cut. What if it was 20,000 big bank analysts? Clearly that would be unfair disclosure. 200,000 Facebook followers? Maybe not, but part of the point of launching an investigation is to gather facts to put that in context.

ryporter 14y ago
It would certainly be different if it were restricted to a specific group, but part of the point was that it was not. Given that this wasn't exactly a backroom deal, I have trouble seeing what an investigation could uncover beyond the first hour of fact finding. Plus, the article makes it sound like the SEC has moved beyond the initial fact-gathering stage and is now actively considering filing charges based on what they know.
- rayiner 14y ago
  Are Facebook followers not a "specific group?" I think that's a bigger question than you're giving credit to. One of the refrains of securities lawyers is: "make your disclosure simple enough for grandma to understand." Because at the end of the day, grandma does have her money in the public markets and the law seeks to protect grandma and not just sophisticated investors. Also, "filing charges" refers to a criminal action. The article says the SEC is considering bringing a civil action. The difference between the two is like the difference between being charged with vehicular manslaughter for driving drunk and getting a citation for parking in a no parking zone.