He points me to a paper by Donna Nagy. I will be curious to see if a prosecutor does anything with it.
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Richard Green is a professor in the Sol Price School of Public Policy and the Marshall School of Business at the University of Southern California. This blog will feature commentary on the current state of housing, commercial real estate, mortgage finance, and urban development around the world. It may also at times have ruminations about graduate business education.
2 comments:
I think the author is right. SEC rule 10b5-2 is broadly written, dealing with "the purchase or sale of securities on the basis of, or the communication of, material nonpublic information misappropriated in breach of a duty of trust or confidence."
The rule is short, and you can find it here:
http://taft.law.uc.edu/CCL/34ActRls/rule10b5-2.html
From scanning the article, it seems to come down to questions of whether:
* The SEC would pursue civil actions, and
* The DOJ would pursue criminal actions.
I'm not optimistic, but it might take trying one or two egregious cases to make it all stop.
This was on Freakonomics a few months ago, referencing a recent paper looking at investment returns of congressmen:
http://www.freakonomics.com/2011/05/25/politics-pays-evidence-of-insider-trading-among-congressmen/
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