The Wall Street Journal reports that back in 2003, the SEC joined a dozen Wall Street firms in attempting to eliminate strict restrictions on compromised and blatantly dishonest security analyst that tried to prevent them from screaming to the public the invention of a better-than-sliced-bread product, sure to provide massive returns and rainbow kisses.
WSJ: The Securities and Exchange Commission joined 12 Wall Street firms in seeking to scrap a key portion of a landmark 2003 deal that put strict curbs on stock analysts, a move that could heighten the ongoing debate about a broad overhaul of the financial-regulatory system.
In a ruling Monday, U.S. District Judge William H. Pauley III in New York rejected a proposed change to the legal settlement put in place to end abuses on Wall Street. The proposal would have allowed employees in investment-banking and research departments at Wall Street firms to “communicate with each other…outside of the presence” of lawyers or compliance-department officials responsible for policing employee conduct—an activity strictly prohibited by the settlement.
Thank goodness for a judge who isn’t afraid to actually do his job!