The Securities and Exchange Commission today announced that the SEC and other securities regulators will immediately conduct examinations aimed at the prevention of the intentional spread of false information intended to manipulate securities prices. The examinations will be conducted by the SEC's Office of Compliance Inspections and Examinations, as well as the Financial Industry Regulatory Authority and New York Stock Exchange Regulation, Inc.
The proposed legislation by Reps. Gary Ackerman (D., N.Y.) and Mike Castle (R., Del.) would give the Securities and Exchange Commission authority to stop bond-rating firms from unilaterally putting triple-A marks on new structured-finance products. Instead, regulators would have to approve certain new products, with the SEC required to base decisions on the product's structure and underlying assets.
Every big company these days professes to have obligations to employees, communities, the environment—and humankind in general—that go well beyond making money. Annual reports, with their yawn-inducing financial statements, have been superceded by earnest CSR and sustainability reports. It's a long way from Milton Friedman, who in 1970 called business supporters of corporate social responsibility "unwitting puppets of the intellectual forces that have been undermining the basis of a free society." Would any Top 1000 CEO dare side—in public anyway—with Friedman today? Not likely.
