The Wall Street reform bill was signed into law by the President. Yet the vast majority of those who support the Obama administration’s call for tighter regulation of banking and investment are probably unaware of a whistle-blower provision, reports the Los Angeles Times. Private sectors could be responsible for catching anybody who beaks the rules causing them to get 10 to 30 percent of fines or settlement fees that the government receives.
Provision for whistle-blowing meant to catch Ponzi and insider trading
The whistle-blower provision calls for that the citizen “provide the Securities and Exchange Commission with original information that reveals the fraud and leads to a successful recovery,” writes the Times. Lawmakers hope this provision will be enough to help give strength to Wall Street although many see some issues with the plan. Businesses will start having problems when employees go to the SEC rather than internal management with things they see. There also can be a whole new slew of lawsuits that could have to be dealt with as well. In both cases, a “society of paid informants,” as Walter Olson of the Cato Institute puts it, would be the result.
Whistle blower trying to get ‘fast’ cash
Think about what would have happened if this provision was here when Goldman Sachs settled with SEC for $ 550 million. The whistle blower could very easily have made $ 55 million in emergency money if he had turned in that tip. Taxpayers get back some of the money Stephen Kohn of the Washington-based National Whistleblowers Center explains. ”Quick cash” tends to be relative of course. Getting the money will pay off even if a whistle blower has to wait through the gruesome legal proceedings. $ 1 million could have to be recovered before the whistle-blower provision will be able to become an informant.
More details on this topic
Los Angeles Times
latimes.com/business/la-fi-reform-whistleblower-20100723,0,6099636.story
An example of whistle-blowing in high government
youtube.com/watch?v=xq8aopATYyw
