Tuesday, February 13

Wrong Type Of Fraud Protection

The S.E.C. wants to give protection to companies like Enron and WorldCom from lawsuits involving fraud.

(NY Times) Last Friday, the commission filed a little-noticed brief in the Supreme Court urging the adoption of a legal standard that would make it harder for shareholders to prevail in fraud lawsuits against publicly traded companies and their executives.

At the same time, the agency’s chief accountant told a conference that it was considering ways to protect accounting firms from large damage awards in cases brought by investors and companies.
Apparently having legit books, protecting your employees and their retirement packages and shareholders are not important. What's important is making sure executives and auditors operate unregulated to pad the numbers and their pockets!