Daniel Fisher notes that the new SEC whistleblower rules, which incentivize employees to dodge internal reporting (often at cross-purposes with that required by Sarbanes-Oxley) to instead seek windfalls, is going to overwhelm SEC staff with false leads, making real fraud detection less likely. Tonya Mitchem Grindon, writing for WLF, suggests internal whistleblower awards to compete with those the SEC offers, though one wonders about the astronomical compliance costs that that would create—especially given the threat of employment-law liability for retaliation against whistleblowers that already overincentivizes spurious reporting.
SEC whistleblower rules
Related Entries:
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- Proxy Monitor: Potential Influence of ISS over Shareholder Votes
- Bader on the Theodore Urban case
- The Carlyle IPO
- MetLife fires 4,300 citing uncertainty and overregulation
- Hans Bader on SEC charges against former Fannie and Freddie execs
- SEC files to appeal Judge Rakoff's rejection of Citi settlement
- Federal district court rejects Citigroup-SEC settlement, sets trial date
- Promise of FCPA guidance prompts inquiries
- SEC Reports First FCPA Enforcement Statistics
- SEC and Citigroup Anxiously Await Ruling
- Cordray suit against ratings agencies thrown out
- Harvey Pitt and Proxy Monitor 2011; say on pay
- Around the web, September 2
- Around the web, August 22
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| Isaac Gorodetski Project Manager, Center for Legal Policy at the Manhattan Institute igorodetski@manhattan-institute.org |
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| Laura Eyi Press Officer, Manhattan Institute leyi@manhattan-institute.org |



