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
- Second Circuit: Pragmatism Trumps Truth
- Conflict Minerals Conflict Continues
- Conflict Minerals: Unmeasured Benefits and Unspoken Burdens
- Richard Epstein: The Improbable Fate of the Durbin Amendment
- CFTC's Aimless Budgeting
- Opposing FCPA Overcriminalization
- Dodd-Frank's Central Risk-Takers
- Regulatory Budget Battles
- JPMorgan, Madoff, and Bureaucracy
- Is Volcker the New FCPA?
- CFTC's Latest Invitation to Court
- 100 Days at the SEC
- Banking on Wind
- SEC Proposes Crowdfunding Rules under the JOBS Act
- Is the PCAOB Turning Back Towards AS2?