President Obama signed into law the Wall Street reform bill. The Los Angeles Times reports that the whistle-blower provision of the bill is something those who support the bill probably do not know about yet. A private sector of individuals who stop rule breaking will get 10 to 30 percent of the money the government gets from these fines and settlements.
Stop Ponzi and insider trading with the whistle-blower provision
According to the Times, citizens will “provide the Securities and Exchange Commission with original info that reveals the fraud and leads to a successful recovery,” with the whistle-blower provision. Lawmakers hope this provision will be enough to help give strength to Wall Street although numerous see some issues with the plan. Companies will start having issues when employees go to the SEC instead of internal management with things they see. This could also bring in a low of new claims with how numerous aggressive law firms you will find out there. It is going to result in a “society of paid informants” no matter what according to Walter Olson of the Cato Institute.
‘Fast’ cash for the whistle-blower
Think about what would have happened if this provision was here when Goldman Sachs settled with SEC for $ 550 million. If a whistle-blower had turned within the tip leading to Goldman Sachs’ censure, that whistle-blower would have made at least $ 55 million in emergency money. That’s money going back to the taxpayer, points out Stephen Kohn of the Washington-based National Whistleblowers Center. Of course, “quick cash” is a relative term. Getting the money will pay down even if a whistle blower has to wait through the gruesome legal proceedings. If the whistle blower provision will go into effect for an informant, the government has to recover $ 1 million first.
Additional information at these websites
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
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