Sunday, May 28, 2006

Deafened by the S.E.C.'s Silence, He Sued - New York Times

Deafened by the S.E.C.'s Silence, He Sued - New York Times: This is a must-read. Once again, the agencies that are supposes to be protecting our interests are selling us out, all the while protesting that they're discharging their duties and doing their jobs.

"Mr. Gavin, 44, is not the only one complaining that the S.E.C. is keeping investors in the dark. An analysis by 10k Wizard, an online search engine for S.E.C. filings, indicates that the agency's two-year-old pledge — to publish all correspondence between it and public companies and mutual funds about their accounting and other practices — remains puzzlingly unfulfilled. As a result, SEC Insight says, shareholders everywhere are missing out on information that could help them make astute investment decisions.
Even as the S.E.C. plays hardball with Mr. Gavin, costing his three-person firm more than $100,000 in legal fees, Christopher Cox, the S.E.C. chairman, recently noted his agency's crucial role in providing investors with that most basic of needs: information. Testifying on May 3 before the financial services committee of the House of Representatives, Mr. Cox said: 'When it comes to giving investors the protection they need, information is the single most powerful tool we have. It's what separates investing from roulette.' "

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