Corporate Governance

The SEC and A Very Unfortunate Leak

By J Robert Brown Jr.

The WSJ has reported that the decision to accept the settlement in the Goldman case was only approved by a 3-2 vote.  This is an outrageous leak, to the extent true. 

This type of information is highly confidential and ought not to leak to the press.  When there were leaks that the Goldman case had been authorized by a 3-2 vote, we criticized the leak and recommended that the Commission rely more often on executive sessions. 

The article in the WSJ noted that the 3-2 vote occurred in a "30-minute closed-door session," an apparent reference to an executive session.  Executive sessions are closed to most of the staff and typically open only to those who are in a must know situation.

Despite the precaution, the leak occurred.  Given the smaller number of officials aware of what transpired at the meeting, the Agency should conduct an investigation and attempt to identify the source of the leak.  Indeed, we think that is an appropriate function for the Inspector General and a better use of his time than investigating whether whether the Goldman case was politically timed.

Full post as published by The Race to the Bottom on July 17, 2010 (boomark / email).