[lbo-talk] Intelligence Czar Can Waive SEC Rules

andie nachgeborenen andie_nachgeborenen at yahoo.com
Thu May 25 22:36:31 PDT 2006


One further thought: it's probably _actionable_ for a mutual fund or pension fund or any sort of trustee with fiduciary duties to invest in a public ally traded that hides its numbers behind a National Security exception. The plaintiffs' class action securities bar would jump on any such action with both feet, and some of those law suits might actually walk.

Joanne asks, who are pension funds responsible to -- by law, they are responsible to the pensioners and potential pensioners; likewise, at least arguable, mutual fund managers dealing with unsophisticated or (as with 401(k) or 403(b) plans) involuntary investors. Practically speaking, are there conflicts of interest, self-dealing, breaches of fiduciary duty? You bet. That's what keeps the plaintiff's securities bar in business, that's what the SEC is for, and why sometimes the US attorney is called in.

--- joanna <123hop at comcast.net> wrote:


>
>
> andie nachgeborenen wrote:
>
> >Of course there is a real strong incentive for
> >corporations not to take advantage of this doubtful
> >benefit. Who's going to invest in some firm that
> isn't
> >at least as transparent as a 10-K or a 10-Q can
> make
> >it? Not me, that's for damn sure.
> >
> Yup.
>
> > How are the ratings
> >folks like S&P going to evaluate a firm or
> recommend m
> >that doesn't disclose its finances? What
> responsible
> >pension fund or mutual fund is going to buy X Co.
> >stocks on no basis at all?
> >
> Responsible pension fund? Well -- responsible to
> whom?
>
> >It's especially ironic that Bernake does this the
> day
> >that Lay & Skilling go down for cooking the books.
> >
> Yup.
>
> Joanna
>
>
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>
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